GSTN issued an advisory on the Refund of additional IGST due to upward price revision!

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular to clarify that if there is an upward revision in the prices of goods after they have been exported, the exporter may apply for a refund of the additional Integrated Goods and Services Tax (IGST) paid. This can be done electronically in FORM GST RFD-01 on the common portal under the category “Any other” until a specific category for this purpose is developed on the portal. Now, GSTN has issued an advisory on 14th July 2024 about its implementation.

GSTN Advisory dated 14th July 2024

Refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports

July 14th, 2024

1. GST Council has approved that the application for refund of additional IGST paid on account of upward revision in prices of goods after exports may also be processed by the Tax Administration. Accordingly, Notification No. 12 /2024-Central Tax dt. 10th July 2024 has also been issued. GSTN is in the process of developing a separate category of refund application in FORM GST RFD-01, for filing an application of refund of additional IGST paid on account of upward revision in prices of goods after exports.
2. However, till the time such a separate category for claiming a refund of additional amount of IGST paid is developed on the common portal, such exporter(s) may claim a refund of the additional IGST by filing an application of refund in FORM GST RFD-01 under the category “Any other” with remarks “Refund of additional IGST paid on account of increase in price after export of goods” and uploading of Statement 9A & 9B (Refer to Notification No. 12/2024-Central Tax dt. 10th July 2024) along with the relevant documents as specified in the Circular 226/20/2024-GST dated. 11.07.2024.
3. The Refund application filed under this category will be processed by the officer based on the documentary proof submitted by the refund applicant. The list of documents that are required to be accompanied by the refund claim is also mentioned in Para 6 of the said Circular.
4. Issues (if any) faced by the taxpayers in filing refund applications may be reported on the Grievance redressal portal: https: //selfservice.gstsystem.in

Thanks,

Team GSTN

Key points

1. There are cases where the price of export goods needs to be revised, subsequent to their exports, due to various reasons such as linking the prices of the export commodities to some international index or as per the terms of the contract between the two parties, etc. In such cases, where there is an upward revision in the price of goods subsequent to exports, the exporter is required to pay additional IGST on account of upward price revision along with applicable interest but there exists no mechanism for allowing them to claim a refund of such additional IGST paid.
2. GSTN is in the process of developing a separate category of refund in FORM GST RFD-01, for filing an application for refund of such additional IGST paid. However, till the time such a separate category for claiming a refund of the additional amount of IGST paid is developed on the common portal, such exporter(s) may claim a refund of the additional IGST paid on account of upward revision in price of goods after exports, by filing an application of refund in FORM GST RFD-01 under the category “Any other” with remarks “Refund of additional IGST paid on account of increase in price after export of goods” along with the relevant documents as prescribed in clause (bb) of sub-rule (2) of rule 89 of the CGST Rules.
3. The exporter shall also upload statements 9A & 9B as prescribed in clause (bb) & clause (bc) of sub-rule (2) of rule 89 of the CGST Rules along with the said refund claim. The exporter may also upload any other document to establish that the refund is admissible to him.

Conclusion

The recent advisory issued by the GST Network (GSTN) regarding the refund of additional IGST due to upward price revisions is a significant step towards ensuring clarity and efficiency in the refund process. Exporters now have a clear pathway to claim refunds for the additional IGST paid, thereby facilitating smoother compliance and reducing financial burdens. By allowing applications under the "Any other" category in FORM GST RFD-01 until a dedicated category is introduced, the GSTN has demonstrated its commitment to addressing exporters' concerns and enhancing the overall ease of doing business.

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