CBIC Circular 264/10/2026 confirms that Rule 96(10) was invalid from inception per Supreme Court's Goodluck India ruling, allowing relief under Rules 89(4A) and 89(4B).
CBIC Accepts Rule 96(10) Was Void from Beginning
In Circular 264/10/2026, the Central Board of Indirect Taxes and Customs (CBIC) has formally accepted the Supreme Court's decision in Goodluck India Pvt Ltd v. Union of India, holding that Rule 96(10) of the CGST Rules, 2017, was void ab initio. The circular clarifies that the provision, which mandated pre-deposit conditions for claiming refunds, was never legally enforceable and is deemed omitted from the beginning.
This development reinforces taxpayer eligibility for refund reliefs under Rules 89(4A) and 89(4B), which allow adjustments in cases of erroneous or delayed refunds. The CBIC direction underscores compliance with judicial precedent and provides a legal basis for pending refund claims that were previously denied on procedural grounds under Rule 96(10).
The board accepts that the impugned rule cannot be treated as operative at any point in time, and consequent reliefs under Rules 89(4A) and (4B) shall be granted where applicable.
Practitioners should reassess rejected refund claims, particularly those predicated on non-compliance with Rule 96(10), and file fresh applications invoking the retroactive invalidity of the rule. Taxpayers may now seek revised assessments and interest computations in line with the circular's directive.
Citations
- Goodluck India Pvt Ltd v. Union of India (2026) SCC Online SC
