Next-Gen GST: Export Refunds at the Crossroads
This article provides an in-depth examination of the legal foundations, procedural requirements, and practical implications of these recent GST reforms.
Tag: GST Refund
Circular Restricting ITC Refund Claims filed after July 18, 2022, IDS violative of Article 14 of the Constitution
The Hon’ble Rajasthan High Court in the case of Shree Arihant Oil and General Mills held that Circular No. 181 dated November 10, 2022, which restricts refund claims on ITC for applications filed after July 18, 2022, for goods under inverted duty structure such as mustard oil, is illegal, arbitrary, and violative of Article 14 of the Constitution, and inconsistent with Notification No. 09/2022-Central Tax (Rate) and Section 54 of the CGST Act, 2017.
Exporter’s Refund Rejection Quashed By Delhi High Court- Date Of LUT Timing Held Irrelevant
The Hon’ble Delhi High Court in Alkesh Tacker HUF set aside rejection of refund of unutilized Input Tax Credit (“ITC”) worth Rs. 10.05 lakhs on zero-rated exports. The Court held that the Department’s ground that the Letter of Undertaking (“LUT”) was filed “after exports” was specious and untenable, since actual exports commenced only post filing of LUT.
GST DAILY – 370 : Restriction imposed on refund arising due to retrospective insertion of Section 16(5) & (6) wouldn’t apply on pre-deposit amount
Restriction imposed on refund arising due to retrospective insertion of Section 16(5) & (6) wouldn’t apply on pre-deposit amount
GST DAILY – 324 : Date of filing first refund application to be taken into consideration for purpose of limitation: HC
THE HIGH COURT OF GUJARAT in the case of Darshan Processors V/s Union of India, decided on 26-7-2024
₹1,600cr GST refunds to be released before Diwali: Delhi CM
Chief minister Rekha Gupta on Sunday announced that nearly ₹1,600 crore of pending GST refunds to traders in the national capital will be released before Diwali. These refunds have been pending since 2019.
GSTN has done this change in GST portal for hassle free tax refund claims
GSTN in an advisory dated August 28, 2025 said that the GST system has been enhanced to allow for claiming Goods and Services Tax (GST) refunds when individual components (minor heads) of a GST demand column showed negative balances and the overall cumulative balance was zero or positive.
No limitation period applicable on refund of IGST on Ocean Freight, as SC’ judgment of Mohit Minerals applicable retrospectively
The Hon’ble Andhra Pradesh High Court in the case of Louis Dreyfus Company Private Limited held that the refund application filed beyond the two-year limitation period, prescribed under Section 54 of the CGST Act for GST paid on ocean freight charges is maintainable in view of the retrospective operation of the Supreme Court judgment in Union of India vs. Mohit Minerals, which struck down the levy of GST on ocean freight as unconstitutional.
Advisory –System Enhancement for Order-Based Refunds
A taxpayers is prevented from claiming refunds when individual components (minor heads) of a demand showed negative balances and the overall cumulative balance was zero or positive. Now, the changes has been implemented wherein refund can be allowed irrespective of overall positive balance..
Refund of Compensation-Cess on coal used for manufacturing of goods, exported on payment of IGST but, no cess charged on exported goods
The Hon’ble Gujarat High Court in Atul Limited & Anr held that refund of unutilised compensation cess on coal used in the manufacture of exported goods is admissible, even where IGST was paid on such exports.