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Refund under rule 89(4B), Goods and Services Tax - GST

Issue Id: - 117545
Dated: 4-10-2021
Refund under rule 89(4B)

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I m importing goods duty free and then export after manufacturing the same without payment of tax.

Now, my question is under which refund option i claim refund of GST paid on other inputs and input services used in exporting such goods.

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Showing Replies 1 to 4 of 4 Records

1 Dated: 4-10-2021
By:- Shilpi Jain

You have both the options presently, that is export without payment of tax and go for refund of the input tax credit. Though if there are capital goods related credit this would not be advisable.

Alternatively you could also export with payment of tax in go for refund.

You could also look at other schemes under FTP which will allow you to import duty free.

2 Dated: 13-10-2021
By:- Vel Murugan

Dear Karnan Verma,

I slightly differ from Madam's view. As you have mentioned that you had imported goods without payment of IGST, then it must be either EOU unit or Advance Authorization Holder. As you had availed the benefit of Notification No. 78/2017 or 79/2017-Customs, Refund of IGST paid on export of goods can not be claimed under rule 96(10) of CGST Rules,2017.

So, I am of the view that you are eligible to claim refund either under rule 89(4) of GST Rules or rule 89(4B) of GST Rules. Some people are of the opinion that in such cases, refund shall be claimed under rule 89(4B) only. I differ from this. Rule 89(4B) is an additional option. In other words, rule 89(4) does not restricts refund claims by AA or EOU units

3 Dated: 14-10-2021
By:- Shilpi Jain

Seems like I have missed the phrase 'duty-free' in the question

4 Dated: 14-10-2021
By:- Shilpi Jain

Under section 96(10) there is an option available whereby, when you are importing you can opt to pay the IGST only and take exemption of BCD. In such case you would still have the option of exporting with payment of tax.

so the option to choose I.e. with payment of tax or without payment of tax export, would depend on the facts of a particular case.


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