The Ministry of Finance’s GST Policy Wing issued Circular No. 226/20/2024-GST on July 11, 2024, detailing the procedure for claiming refunds of additional Integrated Tax (IGST) paid due to upward price revisions of goods after export.
Key Points:
1. Issue and Context:
* Exporters have faced difficulties claiming refunds for additional IGST paid due to post-export price increases, often linked to international indices or contractual terms.
2. New Procedure:
* Exporters must file for refunds electronically using FORM GST RFD-01 on the common portal.
* Until a specific category is developed, these claims should be filed under “Any other” with relevant remarks and documents.
* The jurisdictional GST officer will process these applications based on the provided documents and details from the GST Network (GSTN).
3. Documentation Required:
* Copies of shipping bills, original invoices, contracts necessitating price revisions, debit notes/supplementary invoices, proof of additional IGST payment, and certificates from practicing chartered accountants or cost accountants.
4. Verification and Processing:
* Proper officers will verify completeness and eligibility of the applications, ensuring that all necessary tax and interest payments have been made and correctly reported in GST returns.
* If eligible, the officer will issue refund orders using FORM GST RFD-06 and accompanying documents.
5. Downward Price Revisions:
* In cases of downward price revisions post-export, exporters must refund the proportionate IGST amount received, including applicable interest.