GSTAT Chandigarh dismissed the Department’s appeal and held that turnover of zero-rated supply under Rule 89(4) is measured by invoices raised in the period, not shipping bill dates.
GSTAT Chandigarh has held that, for refund of ITC on exports under bond or letter of undertaking, invoices issued during the relevant period form part of the turnover of zero-rated supply under Rule 89(4) of the CGST Rules even if the goods were exported after that period. [Shruti Bansal v. Gurudev Sales Corporation, 2026-juristway.com-3160-GSTAT(Chandigarh)-GST]
The Bench of Jatinder Pal Singh, Member (Judicial), and Pradeep Kumar Goel, Member (Technical), dismissed the Department’s appeal against an order-in-appeal dated 14 May 2024. It noted that the appellant in the cause title should be the Commissioner of CGST, Chandigarh, not the officer who filed the appeal.
The respondent claimed a refund of ₹26,72,178 for 1 Apr 2022 to 31 Oct 2022, of which ₹26,68,324 was sanctioned. The Department objected to three shipping bills dated 1 Nov 2022, with a total FOB value of ₹74,724, arguing that these exports fell outside the period.
The Bench followed its order dated 24 Sep 2026 in Shruti Bansal Vs. Solitaire Pharmacia Pvt. Ltd. (2026 (9) TMI 2054). There it reasoned that, under Sections 12 and 31 of the CGST Act, the time of supply for export goods is the issue of the invoice before removal, and turnover is the total of invoices issued in the period. All three figures in the Rule 89(4) formula must relate to the same relevant period, and the refund form itself asks for both invoice and shipping bill details.
Since the invoices were admittedly raised within the period and the goods were in fact exported, the Bench found no reason to deny refund on them. It added that refund can be given only once actual export is established. The order-in-appeal was upheld.
2026-juristway.com-3160-GSTAT(Chandigarh)-GST
