Important Keyword: Notification 54/2018, Rule 96(10) amendment, Rule 89(4B) GST, EPCG GST refund, export IGST refund, CGST Twelfth Amendment 2018, GST export rules India, EPCG scheme GST rules,
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[F. No. 349/58/2017-GST (Pt.)]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 9th October, 2018
Notification No. 54/2018 – Central Tax: Seeks to make amendments (Twelfth Amendment, 2018) to the CGST Rules, 2017. This notification amends rule 96(10) to allow exporters who have received capital goods under the EPCG scheme to claim refund of the IGST paid on exports and align rule 89(4B) to make it consistent with rule 96(10).
[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 section 164 of the CGST Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the CGST (Twelfth Amendment) Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the CGST Rules, 2017 (hereinafter referred to as the said rules), in rule 89, for sub-rule (4B), the following sub-rule shall be substituted, namely:-
“(4B) Where the person claiming refund of unutilized input tax credit on account of zero-rated supplies without payment of tax has –
- received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 40/2017-Central Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E), dated the 23rd October, 2017; or
- availed the benefit of notification No. 78/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299(E), dated the 13th October, 2017,
the refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted.”.
3. In the said rules, in rule 96, for sub-rule (10), the following sub-rule shall be substituted, namely:-
“(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have -
- received supplies on which the benefit of the Government of India, Ministry of Finance notification No. 48/2017-Central Tax, dated the 18th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305 (E), dated the 18th October, 2017 except so far it relates to receipt of capital goods by such person against Export Promotion Capital Goods Scheme or notification No. 40/2017-Central Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated the 23rd October, 2017 has been availed; or
- availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E), dated the 13th October, 2017 except so far it relates to receipt of capital goods by such person against Export Promotion Capital Goods Scheme.”.
(Dr. Sree Parvathy S.L.)
Under Secretary to the
Government of India
Note :- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June,2017, published vide number G.S.R 610 (E), dated the 19th June, 2017 and last amended vide notification No. 53/2018 - Central Tax, dated the 9th October, 2018, published vide number G.S.R 1007 (E), dated the 9th October, 2018.
📚 Frequently Asked Questions (FAQs): Notification No. 54/2018 – Central Tax
Q1: What is Notification No. 54/2018 – Central Tax?
Answer:
It is a GST notification issued on 9 October 2018 introducing the Twelfth Amendment to CGST Rules, mainly affecting export refund provisions.
Q2: Which rules were amended by this notification?
Answer:
It amended:
Rule 89(4B)
Rule 96(10) of CGST Rules.
Q3: What was the main objective of this notification?
Answer:
To allow exporters who received capital goods under the EPCG scheme to claim IGST refund on exports.
Q4: What is the EPCG scheme?
Answer:
The Export Promotion Capital Goods (EPCG) scheme allows import of capital goods at concessional or zero customs duty, subject to export obligations.
Q5: What was the restriction before this amendment?
Answer:
Exporters who availed certain concessional benefits could not claim IGST refunds on exports.
Q6: What relief was provided by this notification?
Answer:
It allowed exporters using EPCG capital goods to:
Pay IGST on exports
Claim refund of that IGST
Q7: How does Rule 89(4B) relate to exports?
Answer:
Rule 89(4B) deals with:
Refund of unutilised ITC
For zero-rated supplies without payment of tax
Q8: What does Rule 96(10) cover?
Answer:
Rule 96(10) specifies conditions under which:
Refund of IGST paid on exports is allowed or restricted.
Q9: Did this notification remove all refund restrictions?
Answer:
No.
It only relaxed restrictions related to capital goods under EPCG.
Q10: Does this apply to both goods and services exports?
Answer:
Yes.
Rule 96(10) refers to exports of goods or services.
Q11: Is refund automatic after export?
Answer:
Usually:
Refund is processed through the GST portal
Based on shipping bill and return data
Q12: What documents are needed for IGST refund on exports?
Answer:
Typically:
Shipping bill
Export invoice
GSTR-1 and GSTR-3B details
Bank realisation certificate (for services)
Q13: Does this notification affect domestic suppliers?
Answer:
No.
It mainly affects exporters and refund eligibility.
Q14: What happens if refund is wrongly claimed?
Answer:
The department may:
Issue notices
Recover refund with interest
Impose penalties
Q15: Who should seek professional help regarding export refunds?
Answer:
You should consult an expert if:
You export goods or services
You use EPCG or similar schemes
You face refund delays or rejections
Get assistance with Finodha GST Compliance:
https://finodha.in/gst-compliance/
Download PDF: Notification No. 54/2018 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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