Corrigendum to Circular No. 45/19/2018-GST

Circular No.: 45/19/2018-GST (with Corrigendum)
Date of Circular: 30th May 2018
Date of Corrigendum: 18th July 2019
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 54: Refund
• CGST Rules, 2017:
  • Rule 96(10): Restriction on IGST refund for certain exporters
• Notifications:
  • 40/2017-CT(R), 41/2017-IT(R), 48/2017-CT, 78/2017-Cus, 79/2017-Cus

Summary of Circular (with Corrigendum):

This circular, as amended, provides key clarifications on refund eligibility, restriction, and documentation for various taxpayer categories under GST.

1. Refund for Composition Dealers, ISDs, NRTPs, etc.:
   These categories can claim refund of balances in electronic cash or credit ledger based on their respective returns (GSTR-4, GSTR-5, GSTR-6), without filing GSTR-1 or GSTR-3B.
2. IGST Refund Despite Wrong Disclosure in GSTR-3B:
   Corrected by Corrigendum:
   Originally applicable for 01.07.2017 to 31.03.2018, now extended to 01.07.2017 to 30.06.2019.
   Refund of IGST or cess on exports is allowed even if:

• IGST was incorrectly reported under GSTR-3B Table 3.1(a) instead of 3.1(b),
• Subject to the condition that total IGST/cess refund claimed does not exceed total of columns 3.1(a)+(b)+(c).

3. Refund of Compensation Cess on Inputs for Zero-Rated Supplies:
   Refund of cess on inputs like coal is admissible for zero-rated supplies (exports under bond/LUT), but not if exports are made with payment of IGST.
4. Export of Exempt/Non-GST Goods:
   Export of such goods (e.g., petroleum, alcohol) does not require LUT/Bond, and refund of unutilized ITC is allowed.
5. Rule 96(10) – IGST Refund Restriction on Certain Exporters:
   Exporters are ineligible for IGST refund on exports if they:

• Procured goods under concessional tax notifications like 40/2017-CT(R), 41/2017-IT(R), 48/2017-CT, 78/79/2017-Cus.

Exceptions:

• If inputs are sourced from suppliers not availing these benefits, or
• If capital goods were imported under EPCG scheme (78/79/2017), restriction does not apply.

Source: Circular No.: 45/19/2018-GST (with Corrigendum)