Notification No.: 53/2018 – Central Tax
Date of Notification: 9th October 2018
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 164: Power to make rules
- CGST Rules, 2017 (Eleventh Amendment Rules, 2018):
- Rule 96(10): Refund of IGST on exports – restriction on availing concessional procurement benefits
- Integrated GST Act: Not directly applicable
- Effective Date: Retrospectively from 23rd October 2017
Summary of Notification
- Retrospective Amendment to Rule 96(10) – Refund Restrictions for Exporters:
The Central Government substituted Rule 96(10) of the CGST Rules, 2017 to retrospectively restrict the eligibility for claiming refund of IGST paid on exports, effective from 23rd October 2017.
As per the amended rule, an exporter shall not be eligible to claim refund of IGST on export of goods or services if they have received inputs on which the supplier has availed concessional tax benefits under any of the following notifications:
- Notification No. 48/2017-Central Tax, dated 18th October 2017
- Notification No. 40/2017-Central Tax (Rate), dated 23rd October 2017
- Notification No. 41/2017-Integrated Tax (Rate), dated 23rd October 2017
- Notification No. 78/2017-Customs, dated 13th October 2017
- Notification No. 79/2017-Customs, dated 13th October 2017
This change prevents dual benefits, such as concessional input procurement and export refunds, ensuring alignment with GST anti-profiteering objectives and WTO compliance.
