Central Government Amends IGST Act, 2017: Changes in Export Tax Refund Provisions

• The amendment is made under the powers conferred by sub-section (4) of section 16 of the Integrated Goods and Services Tax Act, 2017, by the Central Government on the recommendations of the Council.

• The amendment modifies a previous notification (No. 01/2023-Integrated Tax) issued by the Ministry of Finance, Government of India, dated July 31, 2023.

• The modification takes effect from October 1, 2023.

• The key change in the notification involves specifying two categories of goods or services and their eligibility for export with an integrated tax refund:

(i) All goods or services (excluding those specified in column (3) of a TABLE) may be exported on payment of integrated tax, and suppliers of these goods or services can claim a refund of the tax paid.

(ii) All suppliers to a Developer or a unit in a Special Economic Zone undertaking authorized operations are identified as a class of persons who can supply goods or services (except those specified in column (3) of the TABLE) to such Developers or units in Special Economic Zones, and they can claim a refund of the tax paid on these supplies.

• The terms mentioned in the amendment, such as "authorized operations," "Developer," "Special Economic Zone," and "unit," are defined with reference to specific clauses in the Special Economic Zone Act, 2005.

• This amendment is set to come into force upon its publication in the Official Gazette.

• The original notification, No. 01/2023- Integrated Tax, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) under number G.S.R. 578(E), dated July 31, 2023. Source : https://taxinformation.cbic.gov.in/view-pdf/1009924/ENG/Notifications