CBIC Confirms Retrospective Applicability of Rule 96(10) Omission Effective from October 23, 2017:

The Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance (Department of Revenue) has released a clarification in relation to the omission of Rule 96(10) of the Central Goods and Services Tax (CGST) Rules, 2017, vide a Circular No. 264/10/2026-GST, dated October 26, 2026, in exercise of its powers granted under sub-section (1) of section 168 of the Central Goods and Services Tax Act, 2017.

At the start of the present circular, the Board drew attention to the judgements passed by several distinct courts in relation to the issue of retrospective applicability of the omission of rule 96(10) of the Central Goods and Services Tax Rules, 2017, from October 23, 2017.

Several taxpayers and tax officials were confused about whether the retrospective applicability of the omission of sub-rule (10) of Rule 96 of the CGST Rules, announced vide Notification No. 20/2024-Central Tax, dated October 08, 2024, is truly applicable from October 23, 2017, as cited by multiple courts in their judgements.

Considering the same confusion, the CBIC, relying on the decision of the Honourable Supreme Court announced on August 06, 2026, in a case titled M/s Goodluck India Limited & Anr. v. Union of India & Ors., has officially clarified that the omission of rule 96(10) of the CGST Rules is applicable retrospectively from October 23, 2017.

"Accordingly, the field formations are advised to deal with pending proceedings concerning rule 96(10) in accordance with the said judgment. It may also be noted that such a treatment shall apply, mutatis mutandis, in respect of omission of rules 89(4A) and 89(4B) as well," the circular clarifies.

For complete clarification, refer to the official circular.