This circular provides clarifications on various issues relating to processing of GST refunds in respect of exports, with the objective of removing ambiguities and ensuring uniform practices across tax authorities.

It clarifies that exporters who have availed drawback only of basic customs duty remain eligible for refund of unutilised input tax credit of central tax, state/UT tax, integrated tax and compensation cess. Refund claims should not be denied merely due to errors in GSTR-1 or GSTR-3B, as corrections can be made through amendment tables in subsequent returns, which must be considered while processing refunds.

The circular states that exports made without filing LUT at the time of export should not be denied zero-rating benefits if exports are otherwise genuine. In such cases, delay in furnishing LUT may be condoned on an ex-post facto basis. Similarly, where goods or services are exported after the prescribed time limit, payment of IGST should not be insisted upon if actual export has taken place, and extensions may be granted based on facts of the case.

It further clarifies that only one deficiency memo can be issued for a refund application and that repeated deficiency memos for the same claim are not permitted. Transitional credit is excluded from the calculation of “Net ITC” for refund purposes. In case of mismatch between invoice value and shipping bill value, refund should be sanctioned based on the lower of the two.

Additional clarifications are provided on filing frequency of refund claims, non-requirement of BRC/FIRC for export of goods, treatment of refunds under existing laws, supplies to merchant exporters at concessional rates, and the limited set of documents that may be called for while processing refund claims. These instructions aim to facilitate timely and fair grant of export refunds under GST.