This circular provides clarity on several refund matters. It explains that from January 2022 onward, refund of accumulated ITC under section 54(3) must be based on credits appearing in GSTR-2B, not GSTR-2A. Earlier circulars are modified to reflect this shift. It also updates the mandatory undertaking in refund applications, removing references to section 42 and provisional credit, since those provisions are no longer in force.

The circular clarifies how to compute “adjusted total turnover” under rule 89(4): the value of exported goods must match the value determined under the updated explanation inserted in July 2022. It also addresses exporters who pay IGST (and interest) when exports or payments are delayed beyond the LUT timelines. Once exports occur or payments are realized, such exporters may claim refund of unutilized ITC and also refund of the IGST earlier paid, though interest already paid is not refundable. Refund applications may be filed under “Excess payment of tax” or, until available, under “Any Other.”