Imagine an exporter opening an old GST refund file after seeing a promising headline. There are shipping records, notices and months of correspondence. The first question is understandable: “Does this mean our refund will finally come through?”
The honest answer is: this update is a reason to review the file, not a promise of payment. The reported text of CBIC Circular No. 264/10/2026-GST, dated 26 October 2026, addresses the effect of omitting Rule 96(10) on pending proceedings.
That distinction matters more than any exciting headline. Before making a cash-flow plan, check what the proceeding actually concerns and where it stood when the rule was omitted.
Key point: The reviewed circular text says Rule 96(10)’s omission is effective retrospectively from 23 October 2017, following the Supreme Court’s Goodluck India decision. Its direction concerns pending proceedings—not an automatic payout of every historical refund.
At a glance: keep these dates separate
| Date | Why it matters |
|---|---|
| 23 October 2017 | Rule 96(10) was inserted with effect from this date |
| 8 October 2024 | The rule was omitted prospectively by Notification 20/2024-Central Tax |
| 6 August 2026 | Date of the Goodluck India Supreme Court decision cited in the circular |
| 26 October 2026 | Date of reported Circular 264/10/2026-GST |
Your file’s status on 8 October 2024 matters. Do not replace that historical check with the simpler question of whether the business still has a refund concern today.
Why did this rule cause disputes?
As described in the circular, Rule 96(10) was intended to prevent a double benefit: using a specified IGST exemption on inputs while also claiming an IGST refund on export of those goods.
The rule was later omitted through Notification No. 20/2024-Central Tax, dated 8 October 2024, notifying the CGST (Second Amendment) Rules, 2024. This followed the 54th GST Council meeting on 9 September 2024.
But removing a rule raised another question: what happens to proceedings already pending when it disappears? That is the issue behind this clarification. “The rule is gone” and “our particular dispute is resolved” are not interchangeable statements.
What the judgment and circular reportedly say
The circular refers to M/s Goodluck India Limited & Anr. v. Union of India & Ors., SLP (Civil) No. 24550 of 2025, with connected matters.
According to the reviewed text, the Supreme Court held that the omission contained no saving clause or sunset clause and applied to all proceedings pending on the date of omission. The decision relied on Kolhapur Canesugar Works Ltd. v. Union of India, [(2000) 2 SCC 536], concerning section 6 of the General Clauses Act, 1897 and omission of a rule.
Issued under section 168(1) of the CGST Act, the reported circular advises field formations to handle pending proceedings in line with that judgment. It also states that the same treatment applies, mutatis mutandis, to omitted Rules 89(4A) and 89(4B)—with the necessary corresponding adjustments.
A practical example: turn the headline into a file review
Illustrative scenario: an exporter has a notice referring to Rule 96(10). The owner remembers the dispute but does not know its procedural position on 8 October 2024.
Instead of assuming a refund is due, the team can work through three questions:
- What is the actual issue? Read the notice and related orders. Identify whether Rule 96(10), Rule 89(4A) or Rule 89(4B) is involved.
- What was pending, and when? Make a timeline showing the refund period, notices, orders and status on the omission date.
- What response fits this record? Ask an adviser to compare those facts with the official circular and judgment before preparing a submission.
The worked outcome is a focused review brief—not a predetermined refund entitlement. If the file was closed or appealed, the procedural position needs examination; do not infer a reopening right from a headline.
TaxQue tip: Take the notice, orders and a one-page timeline to your adviser. “Here is what was pending on 8 October 2024” is a much stronger starting point than “I heard every export refund is now allowed”.
Before you make any business decision
- Separate pending, closed and appealed matters for case-specific review.
- Match the grounds: a reference to an omitted rule does not replace reading the whole proceeding.
- Verify the documents: check the circular and judgment against official records.
- Avoid payment promises: this update does not establish a refund-processing date.
A good next step may be to review an unresolved file. It is not to book an expected receipt merely because a clarification has been circulated.
Watch out: The source used was a hosted copy carrying CBIC letterhead, not a fresh direct CBIC download. The official portal did not return usable content during the earlier recheck. Verify before relying on the wording in a submission.
FAQs
Does this automatically release every old export refund?
No. The reported direction concerns pending proceedings in accordance with the Supreme Court judgment. Individual records and procedural status still matter.
What if our file mentions Rule 89(4A) or 89(4B)?
Include it in the review. The circular reportedly extends corresponding treatment to those omitted provisions too.
Can a closed case simply be reopened?
Do not assume that. The outcome of a closed or appealed matter depends on its own record and requires case-specific advice.
Is a payment timeline announced?
This article establishes none. A legal clarification is not a commitment that a particular amount will arrive by a particular date.
References
- CBIC official tax-information portal Official ↗: verify Circular 264/10/2026-GST, file CBIC-20001/2/2026-GST, and Notification 20/2024-Central Tax.
- Supreme Court official website : locate Goodluck India, SLP (Civil) 24550/2025 and connected matters, decision dated 6 August 2026. These are official lookup portals, not direct document links.
Please verify on the official site: This update retains the previously reviewed hosted-copy basis. No automatic refund, reopening right or individual case outcome is assured.
TaxQue tip: Want a second pair of eyes on your next step? Talk to TaxQue about your business’s facts, without assuming a headline answers every question. info@taxque.in | 9311256088 | taxque.in.
