Goods and Services Tax – GST – By: – Alkesh Jani – Dated:- 1-3-2018 Last Replied Date:- 3-5-2018 – Struggle for Refund of IGST paid for the goods exported out of India. The exporter plays a vital role in the country s economy. The Government encourages exporters by various schemes and incentives. The GST regime has also made an efforts in this direction by granting refund of IGST paid on goods and /or services exported out of India. After passing of 8 months, it is not wise to compare or discuss the erstwhile rules and procedures. Here we shall discuss the issues pertaining to refunds pertaining to goods exported out of India. 2. The refund of tax paid for the goods exported out of India is governed by Section 54 of CGST Act, 2017 and Rule 96 of CGST Rules, 2017. Moreover, Circular No.17/17/2017-GST dated 15th November, 2017, was issued. The para 2.2 deals with the refund of IGST paid on goods exported out of India the same is reproduced below:- 2.2 The refund of integrated tax paid o
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of valid return in form GSTR-3 or GSTR-3B the refund is to be sanctioned. The most surprising is, although GST being online, if there is any error or mistake in shipping bill or GSTR-3B, no communication is made to exporter and the exporter runs here and there for refund even after the expiry of sixty days as stipulated under the law. There are refunds pending for the month of July, 2017, the exporter came to know about the errors or mistakes only after visiting the Customs port. Now, the errors and/or mistakes done by exporter, being new to GST regime such as issuance of commercial Invoice, IGST paid in GSTR-3(1)(a) or (c) instead of (b), they are being penalized for this error/mistakes by non sanctioning of refund. The most interesting and eye catching scenario is, the Circular No. 42/2017-Cus dated 17th November, 2017, Circular No.05/2018-Cus dated 23rd Feb., 2018 and some advisory videos were made available on the portal, they made aware the exporter regarding the errors and/or mis
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SB ineligible for IGST refund . For the above, Para 3 (d) of the Circular No. 05/2018-Cus dated 23rd Feb., 2018 states that Once all the invoices pertaining to Shipping Bill are verified by the officer, the system shall calculate the scroll amount against a shipping bill, after subtracting the drawback amount for each invoice where applicable, and display the refund amount to the officer for approval. While till 15th of Feb., 2018 vide Letter F.No. 450/119/2017-Cus-IV of Director of Customs, enclosing FAQ and at Question No. 19 which states that if the Shipping is with no error is transmitted to Customs but still no refund is sanctioned and the answer to this is that, (iii) at the composite rate of drawback is claimed for that shipping bill during the transitional period between 01.07.2017 to 30.09.2017, thus making the shipping bill ineligible for refund of IGST paid. How far it is just that by granting of 2% of FOB value approx. 18% should be withheld or rejected. The question arise
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out of India. The authority washes their hand vide Circular No. 5/2018-Cus that However, ultimately it is the responsibility of the exporters to ensure careful and correct filing of returns for hassle free sanction of IGST refunds Concluding, it can be said that proper authority shall demonstrate by creating a dummy GSTIN that how to rectify the error and mistakes it in order to help the exporters and other tax payers also, to smoothen the GST regime. The other experts are invited to en-light with their valuable views. – Reply By Avinash Gopalakrishnan – The Reply = I have heard that receipt of refund of CGST and SGST is a two part affair , wherein one submits the relevant refund form to the GST ( Central excise dept )who upon passing the order for refund ,only refunds 50% ( CGST component) and then one has to go to the sales tax department to get the balance 50% paid as SGST , is this the process .. could anyone please clarify on the same – Reply By Alkesh Jani – The Reply = Sir, Yes
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