Refund of Additional IGST Paid Due to Upward Revision in Prices of Exported Goods
Date: July 14th, 2024
In a significant move, the GST Council has approved the processing of refund applications for additional Integrated Goods and Services Tax (IGST) paid due to upward price revisions of goods subsequent to their export. This measure is intended to alleviate the financial burden on exporters who face increased costs after exporting their goods. Notification No. 12/2024-Central Tax, dated July 10, 2024, has been issued to formalize this process.
New Refund Application Category in Development
The GST Network (GSTN) is currently developing a new category within the refund application system, specifically for claims related to additional IGST paid due to post-export price revisions. This new category will be available in FORM GST RFD-01, which will streamline the filing process and ensure that such claims are handled efficiently.
Interim Process for Filing Refund Applications
Until the new category is fully operational, exporters seeking a refund for the additional IGST paid can still file their claims. They should use FORM GST RFD-01 under the category “Any other” and include the remarks “Refund of additional IGST paid on account of increase in price subsequent to export of goods.”
Additionally, they need to upload Statements 9A and 9B, as outlined in Notification No. 12/2024-Central Tax dated July 10, 2024, along with all relevant documents specified in Circular 226/20/2024-GST dated July 11, 2024.
Processing of Refund Applications
The refund applications filed under this interim category will be processed by the designated tax officers. The officers will evaluate the claims based on the documentary evidence provided by the applicants. Exporters are advised to ensure that their applications are accompanied by all the required documents, as detailed in Paragraph 6 of Circular 226/20/2024-GST.
Addressing Issues and Grievances
Taxpayers encountering issues while filing their refund applications can report their problems on the Grievance Redressal Portal at https://selfservice.gstsystem.in. This portal is designed to assist taxpayers in resolving any difficulties they might face during the application process.
Watch changes notified through notification number 12/2024
This initiative by the GST Council and the subsequent notifications are a positive step towards supporting exporters facing increased costs due to post-export price revisions. The development of a specific refund application category within the GST system will further streamline the process, ensuring that exporters can efficiently claim refunds and maintain their financial stability.
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