<p><span>In September 2024, the Ministry of Finance, Government of India, issued Circular No. 233/27/2024-GST. This circular provides important clarifications regarding the regularization of refund of IGST in cases where exporters had imported certain inputs without payment of integrated taxes and compensation cess.</span></p><p><span><strong>Key Highlights:</strong></span></p><ol start="1"><li><span><strong>IGST Refund Regularization:</strong> The circular clarifies that if inputs were imported without payment of IGST and compensation cess but later the IGST and cess are paid along with interest, the refund of IGST on exports will not be considered in contravention of Rule 96(10) of CGST Rules.</span></li><li><span><strong>Notification No. 16/2020-CT:</strong> An explanation was inserted in Rule 96(10) of CGST Rules, retrospectively effective from 23.10.2017, stating that benefits of certain notifications are not deemed availed if only Basic Customs Duty (BCD) exemption is utilized.</span></li><li><span><strong>Reassessment of Bill of Entry:</strong> Exporters must ensure that their Bill of Entry is reassessed by jurisdictional Customs authorities to reflect the payment of IGST and compensation cess on imported inputs.</span></li><li><span><strong>Clarification Scope:</strong> This circular applies to cases where inputs were initially imported without payment of IGST and cess under Notification No. 78/2017-Customs or Notification No. 79/2017-Customs, but later paid with interest.</span></li><li><span><strong>Uniform Implementation:</strong> Field formations are advised to ensure consistent application of the clarifications provided in the circular.</span></li><li><span><strong>Trade Notices:</strong> Recommendations for issuing trade notices to publicize the circular's contents and ensure stakeholders are informed.</span></li><li><span><strong>Implementation Support:</strong> The Board encourages stakeholders to report any difficulties faced in implementing the circular for further clarification.</span> <a href="https://cms.plasament.com/storage/cir-cgst-233-2024.pdf">cir-cgst-233-2024</a><br> </li></ol>