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Notification No. 01/2023 – IT: Exported on Payment of IGST

by Shakshi Bharti | Jan 22, 2024 | GST, 2023 Notifications, Integrated Tax 2023 Notifications, Notifications | 0 comments

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Important Keywords: Notification No. 01/2023 – Integrated Tax, Seeks to notify all goods or services which may be exported on payment of integrated tax and on which the supplier of such goods or services may claim the refund of tax so paid, Notification No. 01/2023 – IT, F. No. CBIC-20006/20/2023-GST, Section 16(4) IGST Act 2017,

Words: 828; Read time: 4 minutes.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs

New Delhi, dated the 31^st July, 2023

Notification No. 01/2023 – Integrated Tax: Seeks to notify all goods or services which may be exported on payment of integrated tax and on which the supplier of such goods or services may claim the refund of tax so paid.

G.S.R….(E).— In exercise of the powers conferred by sub-section (4) of section 16 of the IGST Act, 2017 (13 of 2017) (hereafter referred to as the “said Act”), the Central Government on the recommendations of the Council, hereby notifies all goods or services (except the goods specified in column (3) of the TABLE below) as the class of goods or services which may be exported on payment of integrated tax and on which the supplier of such goods or services may claim the refund of tax so paid:

TABLE

S.No	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
(1)	(2)	(3)
1.	2106 90 20	Pan-masala
2.	2401	Unmanufactured tobacco (without lime tube) – bearing a brand name
3.	2401	Unmanufactured tobacco (with lime tube) – bearing a brand name
4.	2401 30 00	Tobacco refuse, bearing a brand name
5.	2403 11 10	‘Hookah’ or ‘gudaku’ tobacco bearing a brand name
6.	2403 11 10	Tobacco used for smoking ‘hookah’ or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku’ not bearing a brand name
7.	2403 11 90	Other water pipe smoking tobacco not bearing a brand name.
8.	2403 19 10	Smoking mixtures for pipes and cigarettes
9.	2403 19 90	Other smoking tobacco bearing a brand name
10.	2403 19 90	Other smoking tobacco not bearing a brand name
11.	2403 91 00	“Homogenised” or “reconstituted” tobacco, bearing a brand name
12	2403 99 10	Chewing tobacco (without lime tube)
13.	2403 99 10	Chewing tobacco (with lime tube)
14.	2403 99 10	Filter khaini
15.	2403 99 20	Preparations containing chewing tobacco
16.	2403 99 30	Jarda scented tobacco

17.	2403 99 40	Snuff
18.	2403 99 50	Preparations containing snuff
19.	2403 99 60	Tobacco extracts and essence bearing a brand name
20.	2403 99 60	Tobacco extracts and essence not bearing a brand Name
21.	2403 99 70	Cut tobacco
22.	2403 99 90	Pan masala containing tobacco ‘Gutkha’
23.	2403 99 90	All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name
24.	2403 99 90	All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name
25.	3301 24 00, 3301 25 10, 3301 25 20, 3301 25 30, 3301 25 40, 3301 25 90	Following essential oils other than those of citrus fruit namely: – Of peppermint (Mentha piperita);Of other mints : Spearmint oil (ex-mentha spicata), Water mint-oil (ex- mentha aquatic), Horsemint oil (ex-mentha sylvestries), Bergament oil (ex- mentha citrate), Mentha arvensis

Explanation. –

In this Table, “tariff item”, “sub-heading”, “heading” and “chapter” shall mean respectively a tariff item, sub- heading, heading and chapters as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

For the purposes of this notification, the phrase “brand name” means brand name or trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person.

2. This notification shall come into force with effect from the 1^st day of October, 2023.

[F. No. CBIC-20006/20/2023-GST]

(Alok Kumar)
Director

Frequently Asked Questions (FAQs)

Q1. What is Notification No. 01/2023 – Integrated Tax, and why is it important?

Notification No. 01/2023 – Integrated Tax specifies the list of goods and services that can be exported on payment of Integrated GST (IGST), allowing exporters to claim a refund of the tax paid.
This notification is crucial because it:
✅ Clarifies the eligibility for IGST refunds on exports
✅ Streamlines the refund process for exporters
✅ Ensures compliance with the Integrated Goods and Services Tax (IGST) framework
Businesses engaged in exporting goods or services should understand this notification to maximize their tax benefits.

Q2. What is the benefit of exporting goods or services under IGST with a refund claim?

When exporting goods or services:
📌 Exporters can pay IGST and later claim a refund, ensuring smoother cash flow.
📌 No additional GST liability is imposed on foreign buyers, making Indian exports more competitive.
📌 Refunds help businesses reinvest funds into operations and growth.
This option is beneficial for large exporters dealing in zero-rated supplies under GST.

Q3. Who is eligible to claim a refund under Notification No. 01/2023 – Integrated Tax?

The following businesses can claim IGST refunds:
✔️ Exporters of goods or services on payment of IGST
✔️ Suppliers making deemed exports
✔️ Businesses providing services to SEZ (Special Economic Zone) units
To qualify, businesses must file their GST returns correctly and comply with export documentation requirements.

Q4. What are the conditions for claiming an IGST refund on exports?

To claim a refund under Notification No. 01/2023 – Integrated Tax, exporters must:
📌 File GST returns (GSTR-1 & GSTR-3B) accurately
📌 Ensure shipping bills and invoices match GST records
📌 Follow timelines for refund applications
📌 Maintain proof of exports, such as Bill of Lading and Bank Realization Certificate (BRC)
Proper documentation ensures smooth refund processing without unnecessary delays.

Q5. How does an exporter apply for an IGST refund under this notification?

To claim an IGST refund on exports, follow these steps:
1️⃣ File GSTR-1 (Outward Supplies) with correct export details
2️⃣ File GSTR-3B and ensure tax is paid on exports
3️⃣ Ensure shipping bills are correctly linked with GST invoices
4️⃣ Refunds are automatically processed through the GST system and customs portal
Using an expert GST consultant like Finodha.in can help businesses avoid errors and fast-track refund claims.

Q6. How long does it take to process an IGST refund on exports?

🚀 IGST refunds are typically processed within 30 days, provided:
✔️ GST returns and shipping bills are accurately filed
✔️ No discrepancies exist between GST and customs data
✔️ The exporter has a valid GST registration and complies with all filing requirements
Delays may occur due to errors in documentation, mismatched invoices, or verification issues.

Q7. What are the common reasons for IGST refund rejections?

🚨 Refund claims may be rejected due to:
❌ Mismatched shipping bill and GST invoice details
❌ Incorrect GSTIN or export documentation errors
❌ Failure to file GSTR-1 or GSTR-3B correctly
❌ Non-compliance with export regulations
To avoid refund rejection, businesses should verify all export details carefully before submission.

Q8. Can service exporters claim IGST refunds under Notification No. 01/2023 – Integrated Tax?

Yes! Exporters of services can claim IGST refunds if:
✔️ They have received payment in foreign exchange
✔️ The services qualify as zero-rated under GST
✔️ They have paid IGST at the time of invoicing
Proper documentation, including Foreign Inward Remittance Certificates (FIRC), is essential for claiming refunds.

Q9. How does this notification impact businesses operating in Special Economic Zones (SEZs)?

✅ Suppliers to SEZ units can claim IGST refunds on deemed exports.
✅ SEZ developers and units enjoy tax benefits under zero-rated supplies.
✅ Transactions must be properly documented to avail of benefits.
This strengthens India’s SEZ ecosystem and boosts international trade competitiveness.

Q10. Where can I find the official Notification No. 01/2023 – Integrated Tax and expert guidance?

🔗 CBIC website – Under ‘GST Notifications’
🔗 GST Portal (gst.gov.in) – Under ‘Legal Updates’
For professional GST compliance assistance, trusted advisors like Finodha.in can help exporters navigate IGST rules and maximize refunds.