Important Keywords: Notification No. 05/2023 – Integrated Tax, Supplies and Class of Registered Person, Eligible for Refund Under IGST Route, F. No. CBIC-20001/10/2023-GST, Notification No. 05/2023 – Integrated Tax, Section 16(4) IGST Act 2017, Notification No. 01/2023 – IT,
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[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, the 26th October, 2023
Notification No. 05/2023 – Integrated Tax: Seeks to Notify Supplies and Class of Registered Person Eligible for Refund Under IGST Route
G.S.R……(E):—In exercise of the powers conferred by sub-section (4) of section 16 of Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 01/2023-Integrated Tax, dated the 31st July, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R. 578 (E), dated the 31st July, 2023, namely:-
In the said notification, for the portion commencing with the words “all goods or services” and ending with the words “the refund of tax so paid:”, the following shall be substituted and shall be deemed to have been substituted with effect from the 1st day of October, 2023, namely:—
“(i) 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; and
(ii) all suppliers to a Developer or a unit in Special Economic Zone undertaking authorised operations as the class of persons who may make supply of goods or services (except the goods specified in column (3) of the TABLE below) to such Developer or a unit in Special Economic Zone for authorised operations on payment of integrated tax and on which the said suppliers may claim the refund of tax so paid:
Explanation,.– For the purpose of this clause:—
- the term “authorised operations” shall have the same meaning as defined in clause (c) of Section 2 of the Special Economic Zone Act, 2005 (28 of 2005),
- the term “Developer” shall have the same meaning as defined in clause (g) of Section 2 of the Special Economic Zone Act, 2005 (28 of 2005),
- the term “Special Economic Zone” shall have the same meaning as defined in clause (za) of Section 2 of the Special Economic Zone Act, 2005 (28 of 2005),
- the term “unit” shall have the same meaning as defined in clause (zc) of Section 2 of the Special Economic Zone Act, 2005 (28 of 2005).
2. This notification shall come into force on the date of its publication in the Official Gazette.
[F. No. CBIC-20001/10/2023-GST]
(Raghavendra Pal Singh)
Director
Note: The principal notification No. 01/2023- Integrated Tax, dated the 31st July, 2023, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 578(E), dated the 31st July, 2023.
Frequently Asked Questions (FAQs)
Q1. What is Notification No. 05/2023 – Integrated Tax, and why is it important?
Notification No. 05/2023 – Integrated Tax specifies the supplies and class of registered persons eligible for a refund under the IGST route.
This means that certain exporters and businesses can claim refunds on IGST paid on their supplies, making it easier to manage working capital and enhance cash flow. It is a crucial update for businesses engaged in exports.
Q2. Who is eligible for a refund under Notification No. 05/2023 – Integrated Tax?
As per Notification No. 05/2023 – Integrated Tax, the following categories may be eligible for a refund under the IGST route:
✅ Exporters of goods and services
✅ Specified classes of registered persons engaged in zero-rated supplies
✅ Suppliers making deemed exports
✅ Businesses falling under government-specified criteria
Check the official CBIC notification to confirm if you qualify.
Q3. What types of supplies are covered under this notification for IGST refunds?
The notification applies to specific supplies that qualify for IGST refund claims, including:
📌 Exports of goods and services
📌 Supplies to SEZ units and developers
📌 Deemed exports (supplies to EOU, Advance Authorization holders, etc.)
📌 Other notified transactions eligible for IGST refunds
Businesses should review their transactions carefully to determine eligibility.
Q4. How does this notification benefit exporters and businesses?
This notification provides significant financial relief to exporters by:
✔️ Ensuring faster IGST refunds on zero-rated supplies
✔️ Improving cash flow and reducing working capital blockage
✔️ Encouraging more businesses to opt for the IGST route instead of LUT/Bond
By facilitating hassle-free refunds, it promotes global competitiveness for Indian exporters.
Q5. What is the IGST route for refunds, and how does it work?
Under the IGST refund route, businesses:
1️⃣ Pay IGST on exports or zero-rated supplies
2️⃣ File GSTR-1 and GSTR-3B with correct shipping bill details
3️⃣ Receive an automatic refund from the GST department once verified
This method is preferred by many exporters as it offers quicker refunds compared to the LUT/Bond route.
Q6. How can a business apply for an IGST refund under this notification?
To apply for an IGST refund, follow these steps:
1️⃣ Ensure correct reporting of export invoices in GSTR-1
2️⃣ File GSTR-3B and pay the applicable IGST
3️⃣ Link your GST details with the shipping bill in ICEGATE
4️⃣ Verify refund status on the GST portal
5️⃣ Follow up with customs if required
Accurate filing is crucial for the seamless processing of IGST refunds.
Q7. What are the common reasons for IGST refund rejections under this notification?
🚫 Mismatches between GSTR-1 and shipping bill details
🚫 Incorrect filing of GSTR-3B (wrong tax head selection)
🚫 Errors in GSTIN, invoice number, or port code
🚫 Failure to link details with ICEGATE
To avoid rejection, ensure error-free filing and reconciliation of export data.
Q8. Can businesses claim an IGST refund on deemed exports under this notification?
Yes! Deemed exports (such as supplies to EOU, Advance Authorization holders, and EPCG license holders) may also qualify for IGST refunds, provided they:
✔️ Follow the prescribed documentation process
✔️ Ensure recipient endorsements on invoices
✔️ Submit all necessary refund applications in time
Consult a GST expert to ensure smooth refund processing.
Q9. What is the timeline for claiming an IGST refund under Notification No. 05/2023 – Integrated Tax?
The standard refund processing time is 30 days from the date of submission. However, delays may occur due to:
❌ Data mismatches in returns and shipping bills
❌ Pending verifications by customs or GST authorities
❌ Non-linking of invoices with ICEGATE
Timely compliance and accurate documentation help expedite refund claims.
Q10. Where can I find the official Notification No. 05/2023 – Integrated Tax?
You can access the official notification on:
🔗 CBIC website – Under ‘GST Notifications’
🔗 GST Portal (gst.gov.in) – Under ‘Legal Updates’
For expert guidance, consult a GST professional or chartered accountant.
Download PDF: Notification No. 05/2023 – Integrated Tax
More Information: https://taxinformation.cbic.gov.in/
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