SME Chatroom: 'IGST refund rules for exports by EOUs need to be reviewed'

Business Standard brings you the fortnightly Q&A on SMEs

Q. We are an EOU, exporting our goods through Chennai Customs. We pay IGST on all our imported inputs and do not claim GST refund on any goods procured from domestic sources. When we export on payment of IGST, the Customs are refusing the refund on the ground that we have imported our capital goods without IGST payment. Is their stand correct?

Rule 96(10)(b) of the CGST Rules, 2017 says that the person claiming IGST refund should not have availed the benefit of notification 78/2017-Cus dated October 13, 2017, that covers imports of capital goods and inputs by the EOU