Prior to 8 October 2024, Rule 96(10) of the Central Goods and Services Tax Rules, 2017 (CGST Rules) (dealing with refund of IGST paid on exports) specifically barred an exporter to claim refund of goods / services exported ‘on payment of IGST’ (and consequently claim refund) in case benefit of prescribed notifications (such as under EPCG, as an EOU / STPI, Merchant Exports, etc.) is claimed on its procurements. The Kerala High Court has recently ruled that Rule 96(10) of the CGST Rules is ultra vires the provisions of the GST law viz., Section 16 of the Integrated Goods and Services Tax Act, 2017.

We, at BDO in India, have summarised this ruling. Hope you would find it timely and useful.

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