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Taxation Central Ministry of Finance Integrated Goods and Services Tax Act, 2017

Implementation of Section 16(4) of IGST Act related to restriction on export of certain goods on payment of IGST and coverage under refund mechanism

30-Sep-2023 | Circular No. 24 /2023-Customs

Ministry of Finance has issued a notification concerning the implementation of Section 16(4) of the IGST Act, which pertains to the restriction on the export of specific goods on payment of Integrated Goods and Services Tax (IGST), and their coverage under the refund mechanism. As per Notification no. 01/2023-Integrated Tax dated 31.08.2023: It has been specified that all goods or services (excluding those mentioned in column (3) of the TABLE in the Notification) may be exported by paying IGST. The supplier of such goods or services can subsequently claim a refund of the tax paid. Consequently, goods listed in the table of the aforementioned notification can only be exported under a Letter of Undertaking (LUT). To enforce the above restrictions on the export of goods or services on payment of IGST, the DG Systems CBIC has developed a backend functionality. This functionality introduces changes in the system for filing shipping bills and amendments, particularly for the commodities specified in the notification. Since IGST refund is processed at the shipping bill level, checks have been enabled at this level.

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