Relief to Exporters: Rule 96(10) Omitted for Pending IGST Refunds

1. What is Rule 96(10)?

Rule 96(10) of CGST Rules restricted exporters from claiming IGST refunds if they availed certain benefits under exemption notifications like Advance Authorization or EPCG.

This rule was used by authorities to deny IGST refund claims in many cases.

2. What Has Happened Now?

The government issued Notification No. 20/2024 on 8th October 2024, removing Rule 96(10) from CGST Rules.

This omission is prospective (from 8th Oct 2024), but it has a retrospective impact on all pending cases.

3. Impact on Pending Cases

All pending refund cases where Rule 96(10) was used to deny or delay IGST refund will now benefit.

Courts have held that Rule 96(10) no longer applies to those pending cases.

Therefore, exporters can now legally claim refunds of IGST paid on exports.

4. Court Decision Summary

The court has:

Quashed show cause notices and orders-in-original that denied IGST refunds based on Rule 96(10).

Stated that refund claims are maintainable as per Rule 96 (excluding 96(10)).

Dismissed civil applications that challenged the rule's legality, as the rule itself has been omitted.

5.Final Relief for Exporters

Exporters who had refund claims stuck or rejected because of Rule 96(10) can now:

Reclaim IGST refunds

Proceed with refund applications without fear of that rule being used against them.