GST Council proposes to restrict IGST Refunds on Goods Subject to Export Duty

NEW DELHI : The GST Council recommended important amendments in Section 16 of the IGST Act and Section 54 of the CGST Act. The proposed amendments seek to restrict the refund of IGST in cases where export duty is applicable. This restriction will be applied uniformly, irrespective of whether the goods are exported with tax payment or without it.

Furthermore, the amendments would extend this restriction to instances where such goods are supplied to a Special Economic Zone (SEZ) developer or a SEZ unit for authorized operations.

The 53rd meeting of the GST Council, chaired by Finance Minister Smt. Nirmala Sitharaman, took place t June 22, 2024, in New Delhi. Alongside the Finance Minister, the meeting was attended by the Revenue Secretary and the CBIC Chairman.

“Amendment in Section 16 of IGST Act and section 54 of CGST Act to curtail refund of IGST in cases where export duty is payable: The Council recommended amendments in section 16 of IGST Act and section 54 of CGST Act to provide that the refund in respect of goods, which are subjected to export duty, is restricted, irrespective of whether the said goods are exported without payment of taxes or with payment of taxes, and such restrictions should also be applicable, if such goods are supplied to a SEZ developer or a SEZ unit for authorized operations.”, said the the Press Release.