India clarifies retrospective treatment of deleted GST export-refund restriction

Rule 96(10) restricted refunds of integrated GST paid on exports where specified procurement concessions had been used. The circular directs officers to treat its omission as effective from 23 October 2017 and handle pending proceedings in accordance with the Supreme Court decision described in the guidance. Corresponding treatment extends to the omission of rules 89(4A) and 89(4B).^[1]

Notification 20/2024-Central Tax made the underlying deletions. Clause 10 removed rule 96(10), while clause 9(b) removed rules 89(4A) and 89(4B). Related amendments removed references from the rule 89 refund formula and rule 86 credit provision. The notification’s general commencement rule uses publication in the Official Gazette unless a provision specifies otherwise; the circular identifies 8 October 2024 as the omission date.^[1][2]

CBIC describes the Court’s reasoning as turning on the absence of a saving or sunset clause preserving proceedings. The relevant procedural screen is therefore whether the dispute was pending when the rule was omitted, not merely whether an exporter previously received a procurement exemption.^[1]

Groups should identify the provision relied on in each notice or order and retain the refund period, procurement records and procedural history for review with the authority handling the case. The circular does not establish a new filing window, automatic payment or blanket reopening of finally concluded cases. Other grounds in an assessment or refund dispute must be considered separately.^[1][2]