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).

Important Keyword: GST, Section 164 CGST Act 2017, F. No. 349/58/2017-GST (Pt.), Notification No. 54/2018 – Central Tax, Notification No. 3/2017-Central Tax, Notification No. 53/2018 – Central Tax, Notification No. 40/2017-Central Tax (Rate), Notification No. 41/2017-Integrated Tax (Rate), Notification No. 78/2017-Customs, Notification No. 79/2017-Customs.

[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 9^th October, 2018

Notification No. 54/2018 – Central Tax

GST: [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 23^rd 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 23^rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23^rd 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 23^rd October, 2017; or
• availed the benefit of notification No. 78/2017-Customs, dated the 13^th 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 13^th October, 2017 or notification No. 79/2017-Customs, dated the 13^th 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 13^th 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 18^th 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 18^th 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 23^rd 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 23^rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23^rd 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 23^rd October, 2017 has been availed; or
• availed the benefit under notification No. 78/2017-Customs, dated the 13^th 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 13^th October, 2017 or notification No. 79/2017-Customs, dated the 13^th 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 13^th 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 19^th June,2017, published vide number G.S.R 610 (E), dated the 19^th June, 2017 and last amended vide notification No. 53/2018 – Central Tax, dated the 9^th October, 2018, published vide number G.S.R 1007 (E), dated the 9^th October, 2018.

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