Exporters who claimed the benefit of Advance Authorisation (AA) or Export Promotion Capital Goods (EPCG) exemption schemes were barred under Rule 96(10) of the CGST Rules from also claiming a refund of Integrated GST (IGST) paid on exported goods. This rule was omitted in 2024 — but without a "saving clause" that specified what happens to applications that were already pending when the rule was deleted. The Supreme Court has now resolved this uncertainty in favour of exporters.

What the Court Held

Exporters whose IGST refund applications were pending before the Tax Authority at the time Rule 96(10) was omitted in 2024 are entitled to claim the IGST refund without any restriction. The omission of the rule without a saving clause means the restriction no longer applies — and exporters with pending applications can now claim their refunds fully.

This ruling provides relief to a significant number of exporters who had been caught in a procedural limbo — unable to get their IGST refunds due to Rule 96(10) but also uncertain whether the rule's omission applied to them retrospectively.

Background — What Was Rule 96(10)?

Rule 96(10) had restricted exporters who had availed the AA or EPCG exemption from claiming IGST refunds on their exported goods. The logic was to prevent double benefit — one cannot claim both an upfront exemption and a subsequent refund. However, the rule created hardship for exporters who were entitled to choose one route and had pending applications, and it was eventually omitted in 2024.

What Exporters Must Do

If your IGST refund application was pending at the time Rule 96(10) was omitted and has been denied or kept pending on the basis of that rule — approach the GST authorities with this Supreme Court judgment and seek processing and payment of your refund claim. If the authorities remain unresponsive, approach the High Court by writ petition for a direction to process and pay the refund.

Practical Guidance

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If you are an exporter whose IGST refund application was pending when Rule 96(10) was omitted — file an application before the GST authority for processing of your refund claim, citing this Supreme Court ruling.

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If your refund was rejected on the basis of Rule 96(10) while your application was pending — file a rectification application or appeal, citing the omission of the rule and this ruling.

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For future reference, exporters availing AA or EPCG benefits should carefully document which exemption routes they are using and the status of any pending refund applications to ensure they can exercise their full rights when regulatory changes occur.

Case Reference
M/S Goodluck India Limited & Anr. v. Union of India & Ors. | Hon'ble Justice J.B. Pardiwala & Hon'ble Justice K. Vinod Chandran | August 2026 | Hon'ble Supreme Court of India

Frequently Asked Questions

Questions people commonly search on this topic

Can exporters who used Advance Authorisation claim IGST refunds? +
Yes, after the omission of Rule 96(10) in 2024. The Supreme Court has held that exporters whose IGST refund applications were pending at the time of the omission are entitled to claim the full IGST refund without any restriction imposed by the now-omitted rule.
What was Rule 96(10) of the CGST Rules? +
Rule 96(10) restricted exporters who had availed Advance Authorisation (AA) or Export Promotion Capital Goods (EPCG) exemption from also claiming a refund of IGST paid on exported goods. The rule was intended to prevent double benefit but caused hardship for many exporters. It was omitted in 2024.
What is IGST refund for exporters in India? +
When goods are exported from India, the IGST paid on them is refundable because exports are zero-rated under GST. Exporters can either export with payment of IGST and claim a refund, or export under a bond or Letter of Undertaking (LUT) without payment of IGST. The refund of IGST paid on exports is a substantial cash flow benefit for exporters.
How do I claim an IGST refund that was denied under Rule 96(10)? +
File a rectification application or GST appeal against the denial, citing the omission of Rule 96(10) and the Supreme Court's ruling that exporters with pending applications are entitled to the refund. If the GST authority does not process the claim, approach the High Court by writ petition.