CIRCULAR NO-37/2018-F. No. 349/47/2017-GST-Clarifications on exports related refund issues. Rescinded vide Circular No. 125/44/2019 – GST dated 18.11.2019.

Circular No. 37/11/2018-GST

F. No.349/47/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
GST Policy Wing

New Delhi, Dated the 15th March, 2018

To,

The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)

Madam/Sir,

Subject: Clarifications on exports related refund issues- regarding

Board vide Circular No. 17/17/2017 – GST dated 15th November 2017 and CircularNo. 24/24/2017 – GST dated 21st December 2017 clarified various issues in relation toprocessing of claims for refund. Since then, several representations have been receivedseeking further clarifications on issues relating to refund. In order to clarify these issues andwith a view to ensure uniformity in the implementation of the provisions of the law across
field formations, the Board, in exercise of its powers conferred by section 168

(1) of theCentral Goods and Services Tax Act, 2017 (CGST Act), hereby clarifies the issues raised asbelow:

2. Non-availment of drawback: The third proviso to sub-section (3) of section 54 ofthe CGST Act states that no refund of input tax credit shall be allowed in cases where thesupplier of goods or services or both avails of drawback in respect of central tax.

2.1 This has been clarified in paragraph 8.0 of Circular No. 24/24/2017 – GST, dated 21stDecember 2017. In the said paragraph, reference to “section 54(3)

(ii) of the CGST Act” is atypographical error and it should read as “section 54(3)(i) of the CGST Act”. It may be notedthat in the said circular reference has been made only to central tax, integrated tax, State /territory tax and not to customs duty leviable under the Customs Act, 1962. Therefore,a supplier availing of drawback only with respect to basic customs duty shall be eligible for
refund of unutilized input tax credit of central tax / State tax / Union territory tax / integratedtax / compensation cess under the said provision. It is further clarified that refund of eligible

credit on account of State tax shall be available even if the supplier of goods or services orboth has availed of drawback in respect of central tax

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