Rule 96B - Rule 96B
CGST Rules, 2017
ACTIVECONSOLIDATED_BASE_WITH_CURRENT_CONTROLindex,follow
Source control: The text/status on this page is tied to the official source gateway and the Phase 1 legal-review register. Open official source.
Finin2min Summary - Rule in 2 Minutes
Export refund is recoverable to the extent export proceeds are not realised within FEMA-permitted period, subject to RBI write-off/relaxation provisions and re-refund on later realisation.
Exact operative text
96B. Recovery of refund of unutilised input tax credit or integrated tax paid on export of goods where export
proceeds not realised.-(1)Where any refund of unutilised input tax credit on account of export of goods or
of integrated tax paid on export of goods has been paid to an applicant but the sale proceeds in respect of
such export goods have not been realised, in full or in part, in India within the period allowed under the
Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, the person
to whom the refund has been made shall deposit the amount so refunded, to the extent of non-realisation of
sale proceeds, along with applicable interest within thirty days of the expiry of the said period or, as the case
may be, the extended period, failing which the amount refunded shall be recovered in accordance with the
provisions of section 73 or 74 of the Act, as the case may be, as is applicable for recovery of erroneous
refund, along with interest under section 50: Provided that where sale proceeds, or any part thereof, in
respect of such export goods are not realised by the applicant within the period allowed under the Foreign
Exchange Management Act, 1999 (42 of 1999), but the Reserve Bank of India writes off the requirement of
realisation of sale proceeds on merits, the refund paid to the applicant shall not be recovered. (2) Where the
sale proceeds are realised by the applicant, in full or part, after the amount of refund has been recovered
from him under sub-rule (1) and the applicant produces evidence about such realisation within a period of
three months from the date of realisation of sale proceeds, the amount so recovered shall be refunded by
the proper officer, to the applicant to the extent of realisation of sale proceeds, provided the sale proceeds
have been realised within such extended period as permitted by the Reserve Bank of India.237
Paragraph-wise decode
Export refund is recoverable to the extent export proceeds are not realised within FEMA-permitted period, subject to RBI write-off/relaxation provisions and re-refund on later realisation.
Section-Rule-Form-Notification bridge
No direct Rule certified in Phase 1. Check notifications, circulars, forms and corresponding State law.
The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments certified in this phase.
Practical example
Apply the rule to the relevant form, period, portal event and evidence trail before reaching a compliance conclusion.
Professional alert
Verify the latest official active Rule page, amending Gazette and portal version before filing or advising.
Implementation checklist
- Fix the transaction, taxable period and jurisdiction.
- Read every subsection, proviso, explanation and omission marker.
- Open the mapped Rule, form, notification and circular.
- Test State/UT variation and portal version.
- Preserve evidence, approvals, working papers and acknowledgements.
- Record the conclusion, assumptions, source date and reviewer.
Evidence and retention checklist
- Contract, purchase order, invoice or underlying transaction document.
- Registration, return, ledger, challan and portal acknowledgement.
- Official Act/Rule/notification version used and effective date.
- Internal tax position paper, computation and management approval.
- Correspondence, notices, replies, orders and appeal papers where applicable.
Practical Q&A
- What does rule 96B regulate?
- It regulates rule 96b. Read the exact text, conditions, exceptions and transaction date together.
- Which subordinate law should be checked?
- No direct CGST Rule has been certified in this phase. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
- What evidence should be retained?
- Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
- Can portal behaviour override the statute?
- No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.