Important Keyword: IGST amendment 2020, Section 114 Finance Act refund, zero-rated supply IGST rule change, Notification 01 2020 IGST, forex realization GST refund India,
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[F.No.20/06/09/2019-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 01st January, 2020
Notification No. 01/2020 – Integrated Tax: Seeks to bring into force certain provisions of the Finance (No. 2) Act, 2019 to amend the IGST Act, 2017
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R. .....(E).— In exercise of the powers conferred by sub-section (2) of section 1 of the Finance (No. 2) Act, 2019 (23 of 2019), the Central Government hereby appoints the 1st day of January, 2020, as the date on which the provisions of section 114 of the Finance (No. 2) Act, 2019 (23 of 2019) shall come into force.
(Pramod Kumar)
Director,
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 01/2020 – Integrated Tax
Q1: What is Notification No. 01/2020 – Integrated Tax?
Answer:
It enforces Section 114 of Finance (No. 2) Act, 2019 from 1 January 2020, amending the IGST Act.
notfctn-1-2020-igst-english
Q2: What does Section 114 deal with?
Answer:
Amendments to zero-rated supplies & IGST refund rules under IGST Act.
Q3: Which taxpayers are affected?
Answer:
Exporters & SEZ suppliers using zero-rated mechanisms.
Q4: Does it affect exports under LUT?
Answer:
Yes — ITC refund also depends on forex realization compliance.
Q5: Does this change IGST rate?
Answer:
No ❌ only legal framework for refunds & monitoring.
Q6: Does the amendment prevent refund fraud?
Answer:
Yes ✔ refund allowed only on genuine exports.
Q7: Do airlines & MRO suppliers get affected?
Answer:
Yes indirectly — zero-rated compliance more document-intensive.
Q8: What if export payment is delayed beyond RBI limits?
Answer:
Refund can be reversed or recovered with interest.
Q9: How do I prove forex realization?
Answer:
Through BRC/FIRC uploaded for refund claims.
Q10: Do SEZ supplies still get zero-rating?
Answer:
Yes — but subject to stricter audit.
Q11: Do I need to revise past refund claims?
Answer:
Only if they fail forex compliance conditions.
Q12: Is reverse charge impacted?
Answer:
Not directly — RCM rules remain unchanged.
Q13: Can Finodha help with records and tracking?
Answer:
Absolutely ✔
👉 https://finodha.in/gst-return-filing/
Q14: Is this related to Notification 04/2020 IGST?
Answer:
Yes — both build Zero-Rated Compliance Reform framework.
Q15: Are composition dealers affected?
Answer:
Mostly no, unless involved in zero-rated supplies.
🏁 Conclusion
Notification No. 01/2020 – Integrated Tax marks the beginning of export refund reform:
✔ Finance Act amendments activated
✔ Strong anti-fraud environment
✔ Forex-linked refund eligibility
✔ Better alignment with global trade practices
Want stress-free zero-rated refund compliance?
👉 Talk to Finodha GST Experts Today
https://finodha.in/gst-compliance/
Download PDF: Notification No. 01/2020 – Integrated Tax
More Information: https://taxinformation.cbic.gov.in/
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