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Circular No. 24 /2023-Customs
F.No. 450/117/2017-Cus-IV
Government of India
Ministry of Finance, Department of Revenue
(Central Board of Indirect Taxes & Customs)
Room No 229-A, North Block, New Delhi
Dated, 30 September, 2023
To
All
Principal
Chief
Commissioners/
Chief
Commissioners
(Customs/Customs (Preventive) / Customs & Central Tax)
All Principal Commissioners / Commissioners (Customs / Customs
(Preventive)
All Pr. Director Generals /Director Generals under CBIC
Madam/Sir,
Subject: Implementation of Section 16(4) of IGST Act related to restriction on
export of certain goods on payment of IGST and coverage under refund
mechanism- reg.
Reference is invited to sub section (4) of section 16 of IGST act 2017 and
Notification No. 01/2023-Integrated Tax dated 31.08.2023 (copy enclosed).
2. Vide Notification No. 27/2023-Central Tax dated 31.07.2023, Section 16(4)
of IGST Act, 2017 will be effective from 01.10.2023. Further, in terms of above
provision, vide Notification no. 01/2023-Integrated Tax dated 31.08.2023, it has
been notified that all goods or services (except the goods specified in column (3)
of the TABLE in Notification) may be exported on payment of integrated tax on
which the supplier of such goods or services may claim the refund of tax so paid.
In effect, Goods mentioned in the Table annexed to the above notification may be
exported only under LUT.
4.1 To implement above restrictions imposed on export of goods or services
on payment of IGST, DG Systems CBIC has developed a backend functionality to
restrict IGST refund route for the goods as specified in the above notification.
Through the said functionality, changes have been made in the system of filing of
shipping bills and during amendment, with respect to the commodities mentioned
in the said notification. Since IGST refund is paid at shipping bills level, the checks
have been enabled at shipping bill level.
450/117/2017-Cus.IV
I/74404/2023
4.2 It may be noted that, in cases where a shipping bill contains single or
multiple invoices for which IGST have been paid and even if one invoice contains
an item which is restricted for export on payment of IGST under section 16(4) of
the IGST Act, the shipping bill containing such items will not be allowed to be filed.
5. In view of the above, it is requested that the concerned officers under your
jurisdiction may be sensitized, especially for manual Shipping Bills in Non-EDI
ports or even at EDI ports, or for export through posts/courier, to not allow export
of such notified goods on payment of IGST so as to ensure that no undue benefits
are taken by exporting such notified goods in accordance with the provisions of
section 16(4) of the IGST act 2017.
6. It is also requested that suitable trade notices/ public notices may be
issued in this regard to sensitise the trade for the same.
7. The difficulties, if any, in the implementation of this circular may be brought
to the notice of the Board on email id- dircus@nic.in
Hindi version follows.
Encls: as above
Yours faithfully,
(Radhe Krishna)
Under Secretary (Cus-IV)
450/117/2017-Cus.IV
I/74404/2023
[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
Notification No. 01/2023 – Integrated Tax
New Delhi, dated the 31st July, 2023
G.S.R….(E).— In exercise of the powers conferred by sub-section (4) of section 16 of the Integrated Goods and
Services Tax 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: -
(a) Of peppermint (Mentha piperita);
(b) 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. -
(i) 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).
(ii) 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.
(iii) 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 1st day of October, 2023.
[F. No. CBIC-20006/20/2023-GST]
(Alok Kumar)
Director
