GST Advance Ruling on Export Refund Mismatches Rejected
The Authority for Advance Ruling rejected a request to resolve export refund calculation disputes, stating these issues fall outside their legal scope.
- Ruling
- NO.GST-ARA-17/2025-26/B-113, Mumbai, dt. 09/06/2026
- Dated
- 09 Jun 2026
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Tolia Industries asked about IGST refund mismatches on CIF export invoices.
- The company included freight and insurance in their taxable export value.
- The Authority ruled that refund disputes are not eligible for advance rulings.
- The application was rejected as not maintainable under the GST Act.
In short
Tolia Industries asked the Maharashtra Authority for Advance Ruling (AAR) how to fix mismatches between their export invoices and the refund amounts processed by the government. They were paying Integrated Goods and Services Tax (IGST) on the full cost including shipping, but refunds were only being calculated on the base value of the goods. The Authority refused to answer, explaining that they do not have the power to decide on refund-related disputes.
What has changed
How it worked before
Businesses often hoped the AAR could provide clarity on complex procedural issues like export refund mismatches to avoid long-term documentation errors.
What has changed
The ruling confirms that the AAR cannot be used to settle disputes about how much refund you are owed or how to fix errors in your refund filings. In practice, this means you must use standard appeal or grievance channels for refund issues rather than seeking an advance ruling.
Who this affects
Exporters who include freight and insurance in their invoices and face difficulties matching these figures with government refund systems.
An example
A textile exporter ships goods on a CIF basis and pays IGST on the total invoice value. They notice their refund on the ICEGATE portal is lower than the tax paid because it excludes freight. They cannot use an advance ruling to force a change in how the system calculates their refund. They must instead contact their jurisdictional GST officer or follow the formal refund grievance process.
What you should do
If you have a dispute regarding your GST refund, do not file for an advance ruling as it will be rejected. This ruling only applies to the company that asked; it is not a general law, and your local tax officer is not bound by it for your specific case.
If you do nothing
If you assume an advance ruling can solve your refund problem, you will waste time and legal fees on an application that will be rejected. The tax department will not treat a rejected application as a valid excuse for delays in your filings. You remain responsible for following the correct procedural path for your refund claims.
The terms explained
- CIF
- Cost, Insurance, and Freight; a shipping arrangement where the seller pays for the transport and insurance of the goods to the destination.
- FOB
- Free On Board; a shipping term where the seller's responsibility ends once the goods are loaded onto the ship, excluding later transport costs.
- Advance Ruling
- A formal decision from tax authorities on how GST laws apply to a specific business transaction.
- Not maintainable
- A legal way of saying the authority does not have the power to hear or decide on the specific question asked.
The ruling in detail
Authority for Advance Ruling
M/s. TOLIA INDUSTRIES
NO.GST-ARA-17/2025-26/B-113, Mumbai, dt. 09/06/2026 · Maharashtra
Questions before the authority
- Applicant includes freight & insurance in export invoice and paid IGST on either amount. But refund of IGST paid is on FOB basis. Which created mismatch among invoices shown in table 6 A & invoices on ICEGATE & can't get refunds of IGST paid on freight & insurance.
Facts
The applicant is a manufacturer of steel balls that exports goods on a CIF basis. They include freight and insurance in their export invoices and pay IGST on the total amount. However, they are facing issues with IGST refunds, which are processed on an FOB basis, leading to mismatches in their filings.
Ruling
| Question | What the authority ruled |
|---|---|
| Maintainability of application regarding IGST refund mismatch | Application rejected The issue of refund and calculation of refund amounts is not covered under section 97(2) of the CGST Act |
The Authority for Advance Ruling rejected the application as not maintainable. They determined that the query raised by the applicant regarding refunds and the calculation of refund amounts does not fall within the scope of matters on which an advance ruling can be sought under the GST Act.
Reasoning
The Authority examined the scope of section 97(2) of the CGST Act, 2017, which lists the specific matters on which an advance ruling can be sought. They concluded that questions related to refunds and the calculation of refund amounts are not included in the list of permissible subjects. Consequently, the application was deemed **not maintainable** and was rejected without addressing the merits of the tax dispute.
Provisions relied on
- Section 97(2) of the CGST Act, 2017
- Section 98 of the CGST Act, 2017
For the practitioner
This order serves as a reminder that the Advance Ruling mechanism is **strictly limited** to the specific categories defined in section 97(2). It confirms that procedural disputes regarding refund calculations and mismatches in export documentation cannot be resolved through the advance ruling process. Practitioners should seek alternative remedies for refund-related grievances.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/9-gst-rejectiion_order_in_case_of_tolia_industries_11zon.pdf
Legibility of the scan, as read: high.
Prepared 11-10-2026.
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