BRIEF NOTE ON IMPLICATIONS OF NOTIFICATION NO.

53/2018-CT (RATE) AND 54/2018-

CT (RATE) BOTH DATED 09 OCT 2018
Brief History of Rule 96 (10) of CGST Rules, 2017

Amendment Relevant Provisions

Applicable from
Notification No. Retrospective Output IGST Refund Option (’OIRO’) was debarred for
03/2013-CT(R) from 23rd the exporters who had received supplies from the
dated 23 Jan October 2017 supplier who have availed the benefit under specified
2018 notifications.

Based on this position, an exporter who had claimed

Import IGST exemption under EPCG/ AA on import of
Goods was not debarred for going into the OIRO
Notification No. Retrospective OIRO is now debarred in both the following cases for
39/2018-CT(R) from 23rd exporters;
dated 04 Sept October 2017 - who had received supplies from the supplier who
2018 have availed the benefit under specified notifications
- who has claimed import IGST exemption under EPCG/
AA on Import of Goods
53/2018-CT (R) Retrospective The impact of Notification No. 39/2018 is cancelled out
dated 09 Oct from 23rd and the position reverts back to that made applicable
2018 October 2017 vide Notification No. 03/2018. To reiterate,

OIRO is debarred for the exporters who have received

supplies from the supplier who have availed the benefit
under specified notifications.

However an exporter who has claimed Import IGST

exemption under EPCG/ AA on import of Goods was
not debarred for going into the OIRO
54/2018-CT (R) Prospective from With prospective impact, the OIRO is again debarred in
dated 09 Oct 09th Oct 2018 following cases for exporters;
2018 - who had received supplies from the supplier who
have availed the benefit under specified notifications
(except if the benefit is on account of EPCG Scheme)
- who has claimed import IGST exemption under AA
Scheme on import of Goods.

However the notification doesn’t debar OIRO for

exporter who had claimed import IGST exemption
under EPCG Scheme on import of goods.

To comment on the above notifications, it can be said that, EPCG holders are accorded special
status vis-à-vis OIRO, in as much as they can claim IGST benefit (import procurement benefit is
available directly while domestic procurement is available qua supplier) on their procurement
and still export the goods under OIRO. Summarized, as below;
From 23 Oct 2017 to 08 Oct 2018

•OIRO is denied only those exporters who have received supplies from
suppliers who had claimed benefit of the specified notifications.

•In other words, exporters who have claimed Import IGST exemption under
EPCG/ AA are not debarred during this period

From 09 Oct 2018

•OIRO is denied to those exporters who have received supplies from

suppliers who had claimed benefit of the specified notifications (except if the
benefit is on account of EPCG Scheme)

•Further OIRO is also denied to those exporters who have claimed Import
IGST exemption under AA Scheme

•However exporters who have claimed Import IGST exemption under EPCG
Scheme are still permitted to export under OIRO