CBIC’s Clarifications on GST Refund

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The CBIC has released circular 197/09/2023-GST, which clarifies concerns relating to GST refunds.

These changes are intended to bring much-needed clarity to taxpayers and make it easier for them to receive refunds.

For ease of understanding and reference, a summary of clarifications is provided below.

CBIC Provides Clarity on GST Refunds

Question 1

Is the refund of the accumulated Input Tax Credit (ITC) under section 54(3) of the CGST Act eligible based on the input tax credit shown in FORM GSTR-2A or the one available as per FORM GSTR-2B?

Starting from January 1, 2022, the ITC reflected in GSTR-2B can be considered for a refund. 

However, if a refund claim was processed before this circular was issued from January 2022 onwards, it will not be reopened due to the clarification provided in this circular.

For example:

Exporters have willingly made IGST payment along with applicable interest, in cases where goods could not be exported or payment for export of services could not be received within the specified time frame.

Question 2: 

Are the exporters eligible to claim a refund of unutilized input tax credit, integrated tax, and interest paid subsequent to the export of goods or realization of payment in the case of export of services?


  1. The benefit of zero-rated supplies cannot be denied to exporters as long as the goods are actually exported or payment is realized for export of services, even if it is beyond the prescribed time frames.

Also Read: GST Registration for zero-rated supplies

  1. Exporters have the right to claim a refund of unutilized input tax credit under section 54(3) upon actual export of goods or realization of payment for export of services.

iii. Furthermore, exporters are entitled to claim a refund of the integrated tax (IGST) paid earlier, which occurred due to goods not being exported or payment for export of services not being realized within the prescribed time frame. However, the refund of interest paid is not permitted.

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Question 3: 

Is it necessary to account for the value of products exported from India as per the Explanation under sub-rule (4) of Rule 89 of the CGST Rules while calculating adjusted total turnover?


Yes. As a result of the explanation being added to sub-rule (4) of Rule 89 of the CGST Rules, According to Notification No. 14/2022-CT dated 05.07.2022, the value of products exported out of India to be included in computing “adjusted total turnover” would be the same as calculated according to the Explanation included in the aforementioned sub-rule.

GST refunds for foreign tourists’ shopping coming soon

Moreover, If you want any other guidance relating to CBIC’s Clarifications on GST Refund, please feel free to talk to our business advisors at 8881-069-069.

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