Rule 96 (10) of the CGST Rules has been amended vide Notification 53/ 2018 – Central Tax dated October 9, 2018. To recap, Notification No. 3/2018-Central Tax dated 23.01.2018 amended Rule 96 and inserted sub-rule (10) to state that the persons claiming the rebate option should not have received supplies on which the supplier has availed certain the export benefits. Further, Rule 96(10) of the CGST Rules was further amended vide Notification No.39/2018- CT dated September 4, 2018 with retrospective effect from October 23, 2017 and a new sub-rule was inserted which provided that the person claiming refund of IGST paid on export should not have availed the benefit of Notification No.78/2017 and 79/2017- Customs. An extract of the same is provided below:
“(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have – …..
(b) availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 1299 (E), dated the 13th October, 2017.”
The was ambiguity if the new sub-rule was to be applied at an entity-level or on individual supplies. Further, the impact of the amendment on past period rebate claims pertaining to the period July 2017 to October 2017 where there was no upfront exemption available on the procurements made by STPI/EOU was unclear.
Now, the recently issued Notification 53/ 2018 – Central Tax dated October 9, 2018 has deleted the clause (b) to sub-rule (10) which was inserted and solved the anomaly that existed. Accordingly, the option to claim rebate of tax paid on export will be available to those exporters who imports the goods on their own account by availing exemptions under the notifications specified in Rule 96(10). Only those exporters who receive goods from the suppliers who avail the benefit under notifications provided under Rule 96 (10) cannot claim rebate of tax paid on export.