Central Board of Indirect Taxes and Customs vide circular dated the 10th September, 2024 has issued Clarification regarding regularization of refund of IGST in cases where the exporters had imported certain inputs without payment of integrated taxes and compensation.
References have been received from the field formations and trade/ industry wherein clarification has been sought on whether refund of integrated tax paid on exports of goods by a registered person can be regularized in a case where the registered person had initially imported inputs without payment of integrated tax and compensation cess.
It is clarified that refund cannot be claimed where the registered person has only paid Integrated Goods and Services Tax and Compensation Cess on inputs and has availed exemption of only Basic Customs Duty (BCD) under the said notifications.
