SBS-i-11th-Edition

#11 10/18 SBS‘’ UPDATESCOVERED: 1.GSTUPDATESFORTHEMONTHOFOCTOBER2018 — BULLETINII

GSTUPDATESFORTHEMONTHOFOCTOBER2018 -BULLETINII -CompiledbyIndirectTaxDivision NOTIFICATIONS 1.RATIONALISINGTHERESTRICTIONSTOCLAIM REFUNDOFIGSTPAIDONEXPORTSWHENGOODSARE IMPORTEDUNDEREOUOREPCGSCHEME: Rule96ofCGSTRules,2017prescribesforrefundofIGSTpaidonexportofgoods.Sub-rule(10)ofthe saidruleprescribedacondionthattheexporterofgoodsshouldnothaveprocuredthegoodsfroma supplierwhoisavailingdeemedexportbenefitorprocuringgoodsataconcessionalrateof0.1%asappli- cabletoamerchantexporterorimpornggoodsunderEOUorEPCGscheme.Insuchcases,theExporter mustcompulsorilyexportthegoodsunderbondorLUTandcanclaim refundofaccumulatedITCon actualbasistotheextentofinputsusedforexportsunderRule89(4B).VideCircularNo.45/19/2018-GST d1a.ted30.05.2018,ithasbeenclarifiedbyCBICthatthesaidrestriconisonlyapplicabletothoseexport- erswhoarereceivinggoodsfromthosesuppliersavailingtheabovesaidbenefits.Therestriconisnot applicabletoexporterswhoaredirectlyimporngthegoodsunderEOUorEPCGscheme.No ficaon 39/2018-CentralTaxdated04.09.2018hasbeenissuedtoapplythesaidrestriconretrospecvelytoex- porterofgoodswhoareimporngthegoodsdirectlyontheirownunderEOUorEPCGscheme. Thisunexpectedretrospecveamendmentdeniedrefundformanyoftheexporterswhohavealready importedgoodsunderEOUorEPCGschemeandexportedtheirgoodsbypayingIGST.A erduerepresen- taonsoftheunwarrantedhardship,theretrospecveapplicabilityofsaidrestriconhasbeentaken awayandthesaidrestriconisapplicableprospecvelyfrom09.10.2018.Further,therestriconislimit- edtoimportsunderEOUschemeonlyandisnotapplicabletoimportsunderEPCGscheme.Further,Rule 89(4B)isalsoamendedinthiscontexttoprovidethatincaseswhereexportershaveimportedgoods underEOUscheme,therefundofaccumulatedITCcanbegiventotheextentofactualavailmentofITC oninputsusedforexports. {NOTIFICATION53/2018–CENTRALTAXAND54/2018-CENTRALTAXDATED09.10.2018} Theupdatesare-CompiledbyIndirectTaxDivision [email protected] [email protected]