Export Refund: Invoices Issued During Relevant Period Sufficient Even If Goods Actually Exported Subsequently — GSTAT Chandigarh Bench Dismisses Revenue’s Appeal Against Refund of Rs. 18.28 Lakhs

The GSTAT Chandigarh Bench has dismissed Revenue’s appeal and upheld the refund of Rs. 18,28,146 sanctioned to an exporter under Rule 89(4), holding that the ‘Turnover of zero-rated supply of goods’ is to be calculated from the tax invoices issued for goods intended to be exported during the relevant period, and that the goods need not have actually left India during that period. The ruling by Members Jatinder Pal Singh (JM) and Pradeep Kumar Goel (TM) in APL/1/CHD/2026 (Commissioner v. Solitaire Pharmacia Pvt. Ltd., decided 24.09.2026) is the first detailed GSTAT analysis of the interplay between Sections 12, 31, 16(1) IGST, the definition of ‘zero-rated supply’ under Section 2(23) IGST and the Rule 89(4) formula.

Four shipping bills out of the export consignment related to goods invoiced during October–December 2021 but actually exported in January 2022. The Tribunal held that under Section 12 read with Section 31, the time of supply of goods is the date of invoice or the last date for issuance of invoice, and that zero-rated supply takes place at the time of removal for export. The Rule 89(4) formula requires all three components (Net ITC, Turnover of zero-rated supply, Adjusted Total Turnover) to be for the same relevant period, and the turnover is computed from invoices, not from the date of physical export. The refund can however be disbursed only after the exporter establishes that goods have actually been exported.

- 2026-juristway.com-2686-GSTAT(Chandigarh)-GST  |  GSTAT Chandigarh Bench  |  APL/1/CHD/2026  |  24.09.2026