Circular No. 42/2017-Customs Dated 07/11/2017
Refund of IGST paid on export of goods under rule 96 of CGST Rules,2017-
Subject: Refunds of IGST
paid on export of goods under Rule 96 of CGST Rules, 2017
The GST Council in its
22nd Meeting had approved a major relief package for exporters. The Council was
unanimous that it is in the national interest to take all possible measures to
support the exporting community, which earns valuable foreign exchange and
provides significant employment especially in the small and medium sector. The
Council approved that by 10.10.2017 the refund of IGST paid on goods exported in
July would begin to be paid and refunds for subsequent months would be handled
expeditiously. In line with the government's commitment, CBEC has already issued
suitable instructions to expeditiously disburse the refund of IGST paid on goods
exported out of India. Also, with effect from 10th October, 2017, the refund is
getting disbursed for the export of goods made in July 2017. In cases where the
exporter has filed GSTR 3B and the information furnished by the exporters in the
GSTR 1 and GSTR 3B is matching with the details filed by them in Shipping bills,
the refunds have already been disbursed. But there are many cases where the
refund of IGST could not be done due to errors in the EGM /GSTR 1
return/Shipping Bill. The analysis of the common errors that are hindering the
disbursal of IGST refund, and decisions taken to address such errors are as
follows:
A. IGST refunds for the exports of goods in the month of July, 2017:
i) Incorrect SB
number in GSTR 1
There are cases
where the shipping bill number quoted in GSTR 1 either does not exist or it
pertains to another exporter. In respect of these claims, the only way out is to
amend the GSTR 1 (Amendments to taxable outward supply details furnished in
returns for earlier tax periods) and enter the correct shipping bill number. In
these cases, the amendments for information furnished in GSTR 1 for July 2017
need to be filed in Table 9A of GSTR 1 for August 2017. GSTN has been asked to
provide for immediate implementation of this Table so that all such claims can
be processed once amendment is filed.
ii) Invoice number and
IGST paid amount mis-match
Analysis of data
revealed that exporters have quoted different invoice numbers for GST and
Customs purposes. Also, IGST paid amount indicated in GSTR 1 is not tallying
with IGST paid amount indicated in shipping bill. As the same transaction is
being reported under GST Act and under Customs Act, the exporters may take care
to ensure the details of invoice, such as Invoice number, IGST paid etc, under
GSTR 1 and shipping bill match with each other.
iii) EGM Error
Due to either mismatch in
information furnished in Export General Manifest (EGM) vis-a-vis shipping bill
or non-filing of EGM in certain cases, the compliance of'exported out of India'
requirement in Rule 96 (2) of Central Goods and Services Tax (CGST) Rules, 2017
remained unfulfilled. It is also noticed that Gateway EGM in case of many ICD's
Shipping Bills have been manually filed, due to which the system is unable to
match the EGM details. Hence, it is to be ensured that all the shipping lines
operating in ICDs/Gateway ports file EGM online. All ICDs and Gateway ports have
already been instructed to ensure that shipping lines file supplementary EGM
online for the consignments exported in July 2017 by 31stOctober. For subsequent
months also, the ICDs must ensure that the shipping lines invariably file the
Gateway EGM online. In cases where supplementary EGM have been filed
successfully, refunds are already being given.
iv) Wrong Bank Account
given to Customs
In some cases, bank account
details available with Customs have been invalidated by PFMS. Reports on such
accounts / IECs have been provided to the Commissionerates by the Directorate of
Systems in ICES and by email. Exporters may be advised that if the account has
not been validated by PFMS, they must get their details corrected in the EDI
system. Exporters are also advised not to change their bank account details
frequently so as to avoid delay in refund payment.
B. IGST Refunds for the export of goods in the month of August, 2017:
GSTN has provided the utility to declare Table 6A in GSTR1 for exporters to fill
in information related to Zero Rated Supplies. Once exporters file Table 6A, it
would be possible to sanction refunds for the exports made in August 2017. Thus
Public/Trade notices may be issued emphasizing the need to fill Table 6A online
by exporters to claim refunds against exports made in August 2017. Exporters
have already been provided an option to view their Shipping Bill data online on
ICEGATE website, so that they can ensure filing of their Table 6A without any
error. All necessary steps may be taken to make exporters aware that the common
errors that hindered disbursal of IGST refunds in July are not repeated in
subsequent months.
2. The GST council in its 22nd meeting has also
approved the GST rate of 0.1% for supplies to merchant exporters and
Notification No. 41/2017- Integrated Tax (Rate), Notification No. 40/2017- CGST
(Rate) and Notification No. 40/2017 - UTGST (Rate), all dated 23rd October, 2017
have been issued to that effect. The said benefit is subject to the conditions
mentioned in aforementioned notifications. The merchant exporters are advised to
take following precautions to avail the benefit of the scheme:
i) The Name and GSTIN of the Registered Supplier should be provided against each item in Third Party details column of Shipping Bill. The GST Invoice details of the registered supplier of each item should be declared in the ARE Certificate and Date columns in the Shipping Bill format. Necessary changes have already been done in ICES application. The third party details would be printed in the shipping bill copies for fulfilment of the notification conditions.
ii) Further in case of an export consignment containing multiple supplies by registered suppliers, the registered recipient (merchant exporters) need to provide details of all registered suppliers and corresponding invoices against each item in the Shipping bills.
iii) For the purpose of above mentioned notifications concerning supply to registered recipient at concessional GST, registered principal place of business or registered additional place of business shall be deemed to be a "registered warehouse".
iv) Registered recipients (Merchant exporters) may, if required, exclude commercially sensitive information while providing copies of Shipping Bills to registered suppliers.
3. Difficulties if any should be brought to the notice of the Board.
4. Hindi version follows.
(Maninder Kumar)
OSD(CUS-IV)
Refer Vide Circular No. 05 /2018-Customs Dt.23.02.2018
Refer Vide Circular No. 06 /2018-Customs Dt.16.03.2018
Refer Vide Circular No. 01/2019-Customs Dt.02.01.2019