ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 21.08.2025
Gujarat High Court allows IGST Refund against Advance Authorization Exports says Rule 96(10) removed for good
The Gujarat High Court recently delivered a significant judgment addressing the omission of Rule 96(10) of the Central Goods and Services Tax (CGST) Rules, 2017, and its implications for exporters seeking refunds of Integrated Goods and Services Tax (IGST) paid on exports. This ruling has far-reaching consequences for businesses engaged in international trade and clarifies the legal position on pending refund claims.
Background of Rule 96(10)
Rule 96(10) of the CGST Rules was introduced to restrict exporters from claiming refunds of IGST paid on exports if they availed benefits under certain exemption notifications for duty-free procurement of inputs. This rule aimed to prevent exporters from enjoying “double benefits”—duty-free procurement and IGST refunds. However, exporters faced significant challenges due to this restriction, especially when only a small portion of their inputs were procured duty-free.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: Gujarat High Court
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