Kerala HC declares Rule 96(10) of GST Rules Ultra Vires: Major Relief for Exporters on IGST Refunds

The Kerala High Court has declared Rule 96(10) of the GST Rules ultra vires, providing major relief to exporters on IGST refunds. The rule restricted exporters from claiming refunds if they had availed of certain benefits under the Advance Authorization or Export Promotion Capital Goods (EPCG) schemes. The petitioner argued that the rule was arbitrary and violated the principles of natural justice. The court held that the rule was beyond the scope of the GST Act and infringed upon the rights of exporters. This ruling is significant for exporters who were denied IGST refunds due to the restrictive rule. It ensures that exporters can claim refunds without being penalized for availing of legitimate benefits under other schemes. The decision is expected to streamline the refund process and provide much-needed relief to the export community.