CGST circularMedium impact for ecommerce sellers
CBIC clarifies that the omission of rule 96(10) of the CGST Rules applies retrospectively
Official text · Summary prepared automatically
- Document
- Circular No. 264/10/2026-GST
- Issued
- 26 Oct 2026
- Effective
- 26 Oct 2026
- Issued by
- Central Board of Indirect Taxes & Customs (CBIC), GST Policy Wing
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What it means for ecommerce sellers
CBIC Circular No. 264/10/2026-GST clarifies that the omission of rule 96(10) of the CGST Rules, 2017, earlier made prospectively with effect from 8 October 2024, will be effective retrospectively from 23 October 2017, following the Supreme Court judgment dated 6 August 2026 in Goodluck India Limited. Rule 96(10) prevented exporters who benefited from IGST exemption on procurement under specified notifications from also claiming IGST refunds on export of those goods, so the clarification concerns sellers who export goods. Field formations are advised to deal with pending proceedings concerning rule 96(10) in accordance with the judgment, and the same treatment applies mutatis mutandis to the omission of rules 89(4A) and 89(4B). The circular does not say whether proceedings that are no longer pending are affected.
Who it affects
- Exporters who benefited from IGST exemption on procurement under specified notifications and claimed IGST refunds on export of those goods
- Persons with pending proceedings concerning rule 96(10) of the CGST Rules
- Persons with proceedings concerning the omission of rules 89(4A) and 89(4B) of the CGST Rules
- Tax officers in CBIC field formations
Before and after
Date from which the omission of rule 96(10) of the CGST Rules takes effect
- Before
- Rule 96(10) was omitted prospectively with effect from 8 October 2024 by the CGST (Second Amendment) Rules, 2024.
- After
- The omission of rule 96(10) will be effective retrospectively from 23 October 2017, the date from which the rule was brought into effect.
What to do
- An exporter with a pending proceeding concerning rule 96(10) of the CGST Rules would identify that proceeding, since field formations are advised to deal with pending proceedings concerning rule 96(10) in accordance with the Supreme Court judgment in Goodluck India Limited.
- An exporter with a pending proceeding concerning rules 89(4A) or 89(4B) of the CGST Rules would note that the circular applies the same treatment, mutatis mutandis, to the omission of those rules.
- A seller would keep a copy of Circular No. 264/10/2026-GST and the Supreme Court judgment dated 6 August 2026 on record with the papers for any such pending proceeding.
Provisions referred to: Rule 96(10) of the Central Goods and Services Tax Rules, 2017; Rules 89(4A) and 89(4B) of the Central Goods and Services Tax Rules, 2017; Sub-section (1) of section 168 of the Central Goods and Services Tax Act, 2017; Section 6 of the General Clauses Act, 1897; Notification No. 20/2024-Central Tax dated 8 October 2024 (CGST (Second Amendment) Rules, 2024)
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Official text
As issued by Central Board of Indirect Taxes & Customs (CBIC), GST Policy Wing. Where the text starts with “Extract”, only the parts that concern ecommerce sellers are reproduced; the official PDF (opens in a new tab) is the authoritative version.
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Questions sellers ask
Is the omission of rule 96(10) of the CGST Rules retrospective?
Yes. Circular No. 264/10/2026-GST, issued by CBIC on 26 October 2026, clarifies that the omission of rule 96(10) of the CGST Rules, 2017 will be effective retrospectively from 23 October 2017. The rule had earlier been omitted prospectively with effect from 8 October 2024. The clarification follows the Supreme Court judgment dated 6 August 2026 in Goodluck India Limited, and field formations are advised to deal with pending proceedings in line with that judgment.
What did rule 96(10) of the CGST Rules restrict for exporters?
According to Circular No. 264/10/2026-GST, rule 96(10) of the CGST Rules was introduced with effect from 23 October 2017 to prevent a double benefit, so that exporters who benefited from IGST exemption on procurement under specified notifications could not also claim IGST refunds on export of those goods. The circular does not list the specified notifications. It clarifies that the omission of the rule is effective retrospectively from 23 October 2017.
How does the Goodluck India Supreme Court judgment affect pending rule 96(10) refund proceedings?
Circular No. 264/10/2026-GST records that the Supreme Court, in its judgment dated 6 August 2026 in M/s Goodluck India Limited & Anr. v. Union of India & Ors., held that the omission of rule 96(10) applies to all proceedings pending as on the date of omission, as no saving clause or sunset clause accompanied it. The circular advises field formations to deal with pending proceedings concerning rule 96(10) in accordance with that judgment. It does not address proceedings already concluded.
Does the rule 96(10) clarification also cover rules 89(4A) and 89(4B) of the CGST Rules?
Yes. Circular No. 264/10/2026-GST states that the treatment given to the omission of rule 96(10) shall apply, mutatis mutandis, in respect of the omission of rules 89(4A) and 89(4B) of the CGST Rules, 2017. The circular does not describe the content of rules 89(4A) and 89(4B) or state when they were omitted, so it leaves those details to be read from the rules and the Supreme Court judgment it relies on.
Want help working out what this means for your business?
We handle GST and TDS compliance, returns and notice replies for D2C and marketplace sellers, and can walk you through how a change applies to your books.
General information only, not professional advice. The summary is ecomca’s reading of the document; the official PDF is the authoritative version, and later amendments may change it. Check the official source before you act.