Frequently Asked Questions (FAQs) related to IGST Refunds
08/2018 Dated:- 23-2-2018 Trade Notice
Customs
GOVERNMENT OF INDIA
MINISTRY OF FINANCE DEPARTMENT OF REVENUE
OFFICE OF THE COMMISSIONER OF CUSTOMS, CHENNAI-IV
CUSTOM HOUSE, 60, RAJAJI SALAI, CHENNAI-600 001
Telephone: 044-25251217 – Fax: 044-25221861
Email:commr4-cuschn@nic.in
www.chennaicustoms.gov.in
(IS 15700:2005 (Sevottam) (Certified)
F. No. S.Misc.07/2018-Refunds-(Ch. IV)
Dated: 23.02.2018
PUBLIC NOTICE No.08/2018
Sub: Frequently Asked Questions (FAQs) related to IGST Refunds Regarding.
Kind attention of Exporters/ Customs Brokers/ Steamer Agents/ Other Stakeholders and the Trading Public is invited to Board's Instruction in F.No.450/119/2017-Cus.IV dated 15.02.2018, wherein possible issues/ errors in Refund of IGST paid on exports is discussed. This office has been continuously receiving representations from exporters and trade association in relation to pending IGST refund, In order to bring c
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f the IGST Act,. 2017, a registered person making a zero- rated supply is eligible to claim refund in accordance with the provisions of Section-54 of the CGST Act, 2017i under either of the following options, namely:
(i) He may. supply goods or services or both under bond, or letter of undertaking, subject to such conditions, safeguards 'and procedure as may be prescribed, without payment of. integrated tax and claim refund of unutilised input tax credit of CGST, SGST / UTGST and IGST; or
(ii) He may supply goods or services or both, subject to such Conditions, safeguards and procedure 'as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied.
Q.3 What Is IGST refund?
Ans. The second category, mentioned above, pertains to refund of the integrated tax paid for the zero-rated supplies made by suppliers who. opt .for the route of export on payment of integrated tax and claim refund of such tax paid. There be tw
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refund; shall be considered to have been filed and refund shall be processed.
Q. 6 Who would process IGST refund claim?
Ans. The IGST refund module has been designed to have an in-built mechanism to automatically process and grant refund after validating the shipping bill data available in ICES against the GST return data transmitted by GSTN. Manual intervention would be limited to only exceptional cases where automatic validation becomes impossible due to some technical errors. Such exceptional cases would be only those which would be .approved by the Board and the procedure in those cases would be separately laid out.
Q. 7 I have filed my GST returns but still my refund is not sanctioned.
Ans. The IGST refund would not be processed if it fails any validation at the level of either GSTN or Customs system. Validation errors occur due to various deficiencies, which are enumerated here-in-after.
Q. 8 What are the reasons for data not being transmitted from GSTN to Customs system?
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orter finds that even after the correct filing of return, their shipping bills do not reflect in Customs system (reflected in ICEGATE login of exporter), they may write to GSTN helpdesk.
Q. 10 How can I find whether my refund data has been successfully transmitted by GSTN to Customs or not?
Ans. GSTN is reportedly working on a feedback/message system so as to inform the exporters about such failed validations. At has present, the Customs system. does not have any information about the reasons for which validation at GSTN has failed. However, for all those records which have been successfully transmitted to Customs system, the report can be generated at the end of field officers. Even the exporter has the option to check the GST validation status for his shipping bills in his ICEGATE website login for all records transmitted by GSTN.
Q. 11 I have filed correct Information In GST return but still my refund is not sanctioned.
Ans. In cases where the exporter has, filed correct infor
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done for error 6ode.SB001?
Ans. This may occur due mention of wrong shipping bill number furnished in GSTR 1/Table 6A. The possible, reason for such mismatch could be a clerical error made by the exporter at the time of filling of GSTR 1/Table 6A, which can be, rectified by making amendments in GSTR 1 by using Form 9A. Form 9A has been made available by GSTN w.e.f. 15.12.2017 in exporter's login at the GST common portal.
Q. 13-What should be done for error code SB002?
Ans. Exporter has to approach their shipping line/airline/carrier to file the EGM immediately
Q. 14 What should be done for error code SB003?
Ans. This error occurs when GSTIN declared in the SB does not match with the GSTIN mentioned in the corresponding GST return. In this case too, the exporter has to make necessary changes in GSTR 1 by use of amendment Form 9A. Exporters should note that there is no provision of amendment in the shipping bill once the EGM is filed.
Q. 15 What should be done for error code
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ment. It was conveyed and reiterated that there should not be any difference between commercial invoice and GST invoice after implementation. of GST since as per the GST law, IGST is to be paid on the actual transaction value of the supply between the exporter and the consignee, which should be the same as the one declared in the commercial invoice.
If SBOO5 is due to a data entry mistake in GSTR 1, it can be send ed. in or if 9A.d But any mistake in the SB cannot be amended once EGM is filed. Also, if the exporter has used a separate invoice in the SB, he cannot include that in his GSTR 1 in lieu of his GST invoice. Thus, SB005 error, as of now, cannot be corrected by any amendment either in GSTR 1 or in the shipping bill.
For these cases, a mechanism is being considered by the Board to make the requisite corrections manually in line with the recent amendments in Rule 96 of the CGST Rules, 2017. The said mechanism is expected to be available shortly. It may, however, be noted that t
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n to check the GST validation status for his SBs after logging into ICEGATE website. This report shows the response/error code for each of his SBs wherever data has been received from GSTN.
(ii) The exporter also has the option to view the SB details relevant for IGST validation on the ICEGATE website. The exporter can view this while filing the GST returns and ensure that the details are entered accurately in the returns as well so that no mis-match occurs.
(iii) In case, the exporter's account is not validated by PFMS, he may approach jurisdictional Customs Commissionerate with correct account details and get it updated in ICES.
(iv) If the exporter is not getting the refund due to suspension/alert on his IEC, he may clear his dues or submit e-BRC and have the Suspension revoked.
Q. 19. The shipping bill has been transmitted by GSTN to Customs and there is no error In the refund claim. But still the refund has not been received In the bank account.
Ans. SB000 (Successfully
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croll.
There are two more reasons where the SBs will figure in the temporary IGST scroll but not in the final scroll. This could happen if there is an alert/suspension on the IEC in ICES or if the account of the IEC is not validated by PFMS.
Q. 20. What is the course of action if there are multiple errors in the refund claim?
Ans. Each such error would be required to be corrected individually in order to get refund.
Q. 21, In case of errors, where should I contact for necessary action?
Ans. The following steps could be followed in case of errors in processing of refunds:
(i) When the records have not been transmitted by GSTN to Customs, exporters may contact GS TN helpdesk.
(ii) Wherever the error is SBO02/SB006, exporter may approach their shipping line/airline/carrier to file the EGM immediately.
(iii) In cases where the temporary scroll generated but it's not included in-the final scroll, the exporters are advised to furnish correct bank account details to the proper offic
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