The GST (Goods and Services Tax) council has recommended the refund mechanism for the IGST (Integrated Goods and Services Tax) due to price increase after the export of goods. The 53rd GST council was chaired by the Finance Minister Nirmala Sitharaman today ( 2nd June 2024) at 2 pm.
Under the current GST framework, exporters sometimes find themselves in scenarios where the initially declared export price is revised upwards post-exportation. In such cases, exporters are liable to pay additional IGST on the revised, higher value of the goods.
To address this issue and provide relief to affected taxpayers, the GST Council has recommended the introduction of a specific mechanism. This mechanism aims to enable exporters to claim refunds of the additional IGST paid due to upward revisions in the export price of goods post-exportation.
The press release states as follows:
“Refund of additional Integrated Tax (IGST) paid on account of upward revision in price of the goods subsequent to export:
The GST Council recommended to prescribe a mechanism for claiming refund of additional IGST paid on account of upward revision in price of the goods subsequent to their export. This will facilitate a large number of taxpayers, who are required to pay additional IGST on account of upward revision in price of the goods subsequent to export, in claiming refund of such additional IGST.”
In the same meeting, the council meeting recommended restricting the IGST refund of the goods subjected to export duty, 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.
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