TMI BlogIGST Refund taken by EOU contrary to Rule 96(10)X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear experts, An EOU has taken refund of IGST paid on exports after 9th Oct 2018 even though after such date as per Rule 96(10) , EOU claiming IGST and BCD exemption on imports was not allowed to take IGST refund and could only take ITC refund. Now assessee served notice to repay the amount with interest and penalty. However, situation is revenue neutral since as per calculation by Rule 89 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , unutilised ITC refund for the same period would have been more than refund already taken. However, there is violation of Rule 96 and therefore procedural lapse at end of assessee. Is there any legal grounds available with assessee to argue matter in its favour? - Reply By Shilpi Jain - The Reply = One point which can be taken is that Section 16 of IGST did not give any power to impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se any restriction on claiming of refund. Hence the restriction on the EOU not to claim refund of IGST paid is not valid in law. - Reply By Amit Agrawal - The Reply = With due respect, I am unable to agree with views of Ms. Shilpi Jan Mam in her post at serial No. 1 above, due to following reasons: Section 16 (3) of the IGST Act, 2017 reads as follows: (3) A registered person makin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g zero rated supply shall be eligible to claim refund under either of the following options, namely: (a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or (b) he may supply goods or services or both, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to such conditions, safeguards and procedure as may be prescribed , on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder. - Reply By Shilpi Jain - The Reply = he may supply goods or services or both, subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder This provision if you see does not allow prescribing any restrictions... no doubt in that. It only al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lows prescribing Conditions safeguards and procedure. If we have a look at certain other provisions under GST there will be a specific mention of restrictions also allowed to be prescribed. Also refund is allowed as per 54 rule . Though the restrictions imposed on eou is as per rule 96 . Hope this clarifies. - Reply By Amit Agrawal - The Reply = I respectfully differ, Ms. Shilpi Jain Mam. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In my view, subject issue under discussion here about Rule 96 (10) of the CGST Rules, 2017 - what you call 'restrictions' - is duly covered within the terms used u/s 16 (3) of the IGST Act, 2017 (i.e. subject to such conditions, safeguards and procedure as may be prescribed ). In continuation of above, u/s 16 (3) , a registered person making zero rated supply is eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to claim refund under either of the given two options in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder . In my view, Rule 96 (10) of the CGST Rules, 2017 is duly valid under law being one of conditions and / or safeguards prescribed to grant refund u/s 16 (3) of the IGST Act, 2017 read with Section 54 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CGST Act, 2017 or Rule 96 of the CGST Rules, 2017 . These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By Amit Agrawal - The Reply = I respect contrary views. - Reply By Shilpi Jain - The Reply = Error in my earlier post. Refund u/s 54 and not rule 54 . Also if we look at certain provisions like ITC its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elf it reads as Every registered person shall, subject to such conditions and restrictions as may be prescribed...... What Amitji states is a possible stand which the Department can take to state that restrictions are included in the safeguards. - IGST Refund taken by EOU contrary to Rule 96(10) - Query Started By: - ROHIT GOEL Dated:- 29-12-2022 Goods and Services Tax - GST - Got 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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