GST export refunds: omission of rule 96(10) to apply from 2017
What changed. Rule 96(10) of the CGST Rules restricted refund of IGST paid on exports where the exporter had used certain concessional or exemption notifications on its inputs. It was omitted from 8 October 2024 by Notification No. 20/2024-Central Tax.
In its judgment of 6 August 2026 in Goodluck India Limited v. Union of India (SLP (C) No. 24550 of 2025), the Supreme Court held that, because the omission had no saving clause, it applies to all proceedings pending on the date of omission. CBIC has now clarified that:
- the omission of rule 96(10) is effective retrospectively from 23 October 2017;
- officers are to deal with pending proceedings on rule 96(10) according to the judgment;
- the same treatment applies to the omission of rules 89(4A) and 89(4B).
Who it affects. Exporters who paid IGST on exports and claimed refunds while using the input benefits covered by rule 96(10). It is most relevant to exporters with pending show cause notices, demands, recovery proceedings or appeals under that rule.
From when. The circular is dated 26 October 2026. It applies to proceedings pending before officers.
What to do. - List any notices, orders or appeals still pending on rule 96(10), 89(4A) or 89(4B). - Bring the judgment and this circular to the officer's or appellate authority's attention. - Take advice on matters already closed, as the circular speaks of pending proceedings.
Official source: CBIC Circular No. 264/10/2026-GST dated 26 October 2026
This is general information based on the law as on the date shown, not professional advice. Rules change often; check the current position before acting.