In re Lucre International (GST AAR Maharashtra)
Summary: Maharashtra Authority for Advance Ruling rejected the application filed by M/s. Lucre International, a registered exporter engaged in export of goods from India, holding that the questions raised concerning refund of unutilized input tax credit were outside the scope of advance ruling prescribed under Section 97(2) of the CGST Act, 2017. The applicant sought rulings on four questions: whether refund of unutilized ITC under Section 54(3) could be claimed for exports under LUT; whether such refund could be claimed while availing customs-only duty drawback; whether the second proviso to Section 54(3) applied where drawback excluded central tax; and whether, after October 2017, the single rate of drawback not including the GST component could be availed along with GST refund. The Authority examined Section 97(2), which confines advance rulings to specified matters such as classification, applicability of notifications, determination of time and value of supply, admissibility of ITC, tax liability, registration requirements and whether a particular activity amounts to supply. It found that questions concerning admissibility of refund and calculation of refund amount were not covered by Section 97(2). Consequently, no advance ruling could be given on the questions raised and the application was rejected.
The Authority did not adjudicate the substantive entitlement to refund or the compatibility of GST refund with customs-only duty drawback; rejection was on maintainability. reported the principle that an AAR cannot give a ruling on issues outside Section 97(2), while the export-refund position concerning drawback of customs duty has also been addressed in Circular No. 37/11/2018-GST.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING,MAHARASHTRA
(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively] by M/s. LUCRE INTERNATIONAL. The applicant is seeking an advance ruling in respect of the following questions.
1. Can applicant claim refund of unutilized ITC under Section 54(3) for export under LUT?
2. Can applicant claim such refund while also availing customs-only duty drawback?
3. Is the second proviso to Section 54(3) applicable when drawback excluded central tax?
4. As post October 2017 there is only single rate of duty which doesn’t include GST component, then GST refund can be claimed along with it?
We have examined the application and find that applicant’s query is related to the refund of unutilized GST. We find that Section 97(2) of the CGST Act, 2017 reads as under:-
“2) The question on which the advance ruling is sought under this Act, shall be in respect of,-
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term”
We find that questions related to admissibility of refund, calculation of the refund amount etc., are not covered under the provisions of Section 97(2). Accordingly, we find that no ruling can be given in respect of the questions raised by the applicant. Therefore, the present application is liable to be rejected. Hence the order. Therefore, the application is rejected.
ORDER
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-52/2025-26/B-112 | Mumbai, dt. 09/06/2026
The query raised by the applicant is not maintainable in terms of Section 97(2) of the CGST Act, 2014. Accordingly,the application is rejected.
