Important Keyword: GST Circular 176/08/2022, Circular 106/25/2019 GST, Rule 95A CGST Rules, GST refund international tourists, Withdrawal of GST circular, Notification 14/2022 Central Tax, GST airport retail outlets, GST Rule 95A omitted, GST refund clarification, GST Circular 176 explained,
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F.No. CBIC-20001/2/2022-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
New Delhi, Dated the 6th July, 2022
Circular No. 176/08/2022 - GST: Withdrawal of Circular No. 106/25/2019-GST Dated 29.06.2019.
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All) Madam/Sir,
Subject: Withdrawal of Circular No. 106/25/2019-GST dated 29.06.2019 – Reg.
Kind attention is invited to Circular No. 106/25/2019-GST dated 29.06.2019 wherein certain clarifications were given in relation to rule 95A, inserted in the Central Goods and Services Tax Rules, 2017 w.e.f. 01.07.2019, for refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange.
2. The said rule 95A has been omitted, retrospectively w.e.f. 01.07.2019, vide notification No. 14/2022-Central Tax, dated 05.07.2022. Accordingly, the Board, in exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017, hereby withdraws, ab-initio, Circular No 106/25/2019-GST dated 29th June, 2019.
3. It is requested that suitable trade notices may be issued to publicize the contents of this circular. Hindi version would follow.
(Sanjay Mangal)
Principal Commissioner (GST)
📚 Frequently Asked Questions (FAQs): Circular No. 176/08/2022 - GST
Q1. What is Circular No. 176/08/2022 - GST about?
Answer: Circular No. 176/08/2022 withdraws Circular No. 106/25/2019-GST because Rule 95A of the CGST Rules, which formed the basis of that circular, was retrospectively omitted with effect from 1 July 2019.
Q2. Why was Circular No. 106/25/2019-GST withdrawn?
Answer: It was withdrawn because Rule 95A, which dealt with GST refunds on certain supplies made through airport retail outlets to international tourists, was omitted retrospectively. Once the rule ceased to exist, the explanatory circular also became redundant.
Q3. What does "ab initio" mean in this circular?
Answer: "Ab initio" means "from the beginning." The withdrawal is treated as effective from the original date of the earlier circular, as though that circular had never been issued.
Q4. What was Rule 95A of the CGST Rules?
Answer: Rule 95A prescribed a refund mechanism for GST paid on inward supplies of indigenous goods sold through retail outlets located beyond immigration counters at international airports to outgoing international tourists paying in foreign exchange.
Q5. From which date was Rule 95A omitted?
Answer: Rule 95A was omitted retrospectively with effect from 1 July 2019 through Notification No. 14/2022-Central Tax dated 5 July 2022.
Q6. Does Circular No. 176 introduce any new GST provisions?
Answer: No. It merely withdraws an earlier circular after the underlying legal provision was removed. It does not create any new compliance requirement or tax liability.
Q7. Does this circular affect ordinary GST taxpayers?
Answer: Generally, no. The circular concerns a specialized refund mechanism applicable to retail outlets located beyond immigration counters at international airports and therefore has limited impact on regular businesses.
Q8. Why is it necessary to withdraw a circular?
Answer: A circular is intended to clarify existing legal provisions. When the legal provision itself is omitted or repealed, the related circular should also be withdrawn to maintain consistency within the GST framework.
Q9. Does this circular change GST refund provisions generally?
Answer: No. It only relates to the withdrawal of the refund mechanism provided under Rule 95A. Other GST refund provisions under the CGST Act and Rules remain unaffected.
Q10. Who should be particularly aware of this circular?
Answer: Airport retail operators, GST practitioners, tax consultants, and departmental officers dealing with historical refund matters relating to international tourists should understand the implications of this withdrawal.
Q11. Is Circular No. 106 still valid after this notification?
Answer: No. Circular No. 106/25/2019-GST stands withdrawn ab initio and is no longer applicable because the statutory rule it explained has itself been omitted retrospectively.
Q12. Why is Circular No. 176 important despite being brief?
Answer: Although concise, the circular demonstrates an important legal principle—that administrative clarifications cannot survive independently once the statutory provisions they interpret are removed from the law.
Conclusion
In simple terms, Circular No. 176/08/2022 is a housekeeping measure that aligns CBIC's administrative instructions with the amended GST Rules. Since Rule 95A was retrospectively omitted, the circular explaining that rule also had to be withdrawn from the very beginning.
Download PDF: Circular No. 176/08/2022 - GST
More Information: https://taxinformation.cbic.gov.in/
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