Circular No.: 176/08/2022-GST
Date of Circular: 6th July 2022
Relevant Sections and Rules:
- CGST Act, 2017:
- Section 168(1): Power to issue instructions
- CGST Rules, 2017:
- Rule 95A: Refund to retail outlets at international departure areas (now omitted)
- Notification Referenced:
- Notification No. 14/2022–CT dated 05.07.2022
Summary of Circular:
- Withdrawal of Circular No. 106/25/2019-GST Dated 29.06.2019:
Circular No. 106/25/2019-GST had provided clarifications regarding the operation of Rule 95A, which allowed retail outlets at international departure areas (beyond immigration counters) to claim refund of GST paid on inward supplies when goods were sold to outgoing international tourists against foreign exchange. - Retrospective Omission of Rule 95A:
Rule 95A has now been retrospectively omitted w.e.f. 01.07.2019 via Notification No. 14/2022–CT dated 05.07.2022. Consequently, the legal basis for the refund mechanism described in the earlier circular no longer exists. - Effect of Circular – Ab Initio Withdrawal:
Accordingly, the CBIC has withdrawn Circular No. 106/25/2019-GST with retrospective effect (ab initio). This means the circular is treated as having never been issued, given the rule it was based on is now removed from inception.
Source: Circular No.: 176/08/2022-GST
