GST Circular No 226/2024
The circular dated July 11, 2024, from the Central Board of Indirect Taxes and Customs addresses the refund process for additional Integrated Goods and Services Tax (IGST) paid when the price of export goods is revised upward after export. Here’s a simplified explanation:
Issue: Exporters sometimes need to increase the price of their goods after exporting them, which requires paying extra IGST. Previously, there was no clear way to get a refund for this additional IGST.
New Procedure: To handle this, exporters can now apply for a refund of the extra IGST using an electronic form (FORM GST RFD-01) on the GST portal. This process will be managed by the GST officer of the exporter’s jurisdiction.
Application Details: Until the portal is updated to specifically handle these refunds, exporters should apply under the
“Any other” category with the remark “”Refund of additional IGST paid on account of increase in price after export.”” They need to provide supporting documents like shipping bills, invoices, and proof of payment.
Refund Conditions: Refunds will only be issued if the amount claimed is at least ₹1,000. Applications must be submitted within two years of the relevant date, with specific rules for claims made before the circular’s effective date.
Verification: The GST officer will verify the details and documents before processing the refund.
Downward Price Revision: If the price is reduced after export, the exporter must deposit the excess IGST refunded along with applicable interest.
The circular aims to standardize the refund process and ensure fair treatment of exporters facing price revisions.
