GST
Goods barred from the IGST-paid export route
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Facts
Sec 16(4) of the IGST Act allows the government to notify goods or persons who cannot export with payment of IGST. Notification 1/2023-IT has been reported to restrict items such as pan masala, tobacco and certain essential oils. Check the latest notification.
Provisions and law
- Sec 16(4), IGST Act 2017Government may notify goods or persons for whom export on payment of IGST is not allowed
- Notification 1/2023-Integrated Tax (reported)Goods for which exports with payment of IGST are restricted; verify the current text
Analysis
If your goods are on the list, export under LUT and claim ITC refund instead. Otherwise the IGST refund may be denied. The restricted list is narrow, so most exporters are not affected, but a quick HSN check before choosing the route avoids a stuck refund.
Conclusion
- Check the HSN against the restricted list.
- If restricted, file LUT and export without IGST.
- Claim ITC refund through RFD-01.
- Recheck when the list changes.
A Savvy can do this for you
Refund of IGST paid on export of goods via shipping bill
₹4,999
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