Customs – 08/2018 – Dated:- 23-2-2018 – GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-682009 F.No.S34/40/2017 DBK.CUS Date: 23.02.2018 PUBLIC NOTICE NO. 08/2018 Sub: Frequently asked Questions on IGST refunds on goods exported out of India The Central Board of Excise and Customs, New Delhi has informed that it has been continuously receiving representations from exporters and trade association in relation to pending IGST refund. Therefore, the Board has decided to release Frequently Asked Questions (FAQ) on IGST refund which is circulated as enclosed to create awareness amongst the EXIM community. SUMIT KUMAR COMMISSIONER OF CUSTOMS Frequently Asked Questions on IGST refunds on goods exported out of India Q1 What is zero rated supply under GST? Ans. Under GST, exports and supplies to SEZ are zero rated as per Section 16 of the IGST Act, 2017. By zero rating, it is meant that the entire supply
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bove, pertains to refund of 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 can be two sub categories of such suppliers namely: (i) Exporter of goods (ii) Service exporters and persons making supplies to SEZ Q4. Who can get IGST refunds from Customs? Ans. The registered persons who have exported goods out of India on payment of IGST are eligible to get the refund of integrated tax so paid subject to certain conditions related to filing of correct and sufficient information in both GSTN and Customs system. Q. 5 How to file application for getting IGST refund from Customs? Ans. As per Rule 96 of the CGST Rules 2017, dealing with refund of IGST paid on goods exported out of India, the shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India, Once both the export general manifest (EGM) and
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alidation error occurs 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? Ans. It has been observed that a number or record have not been transmitted by GSTN to the Customs system which could be on account of various errors that have occurred in the validation carried out by the GSTN. It Is understood that cases where such validations fail are on account of : (i) Both GSTR 1 /Table 6A and GSTR 3B have not been filed for that supply or there are missing invoices in GSTR 1 for that supply. (ii) Invoices provided In Table 6A of GSTR 1/ 1E arc incomplete, e.g., details of shipping bill and port number/ code ore not mentioned. (iii) IGST paid under Table 3.1(b) of GSTR 3B being less than total IGST claimed in Table 6A of GSTR 1/ 1E of the same period. The claim cannot be more than that or the amount of IGST paid. Q.9 What steps are to be token in cases of errors mentioned above and who should
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STN. 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 information in the GST returns and it gets successfully validated by the GSTN, it is thereafter transmitted electronically to the Customs system wherein the GST return data is matched with the shipping bill data. If the matching is successful, ICES processes the claim for refund and the relevant amount of IGST paid with respect to each shipping bill or bill of export is electronically credited to the exporter's bank account as registered with the Customs authorities. But, wherever the matching fails on account of some error, the refund do not get sanctioned. The matching between the two data sources is done at invoice level and any mis-match of the laid down parameters results in one or more of the following errors/ responses: Code Meaning SB000 Successfully validated SBOO1 Invalid SB details SB002 EGM not filed SBOO3 GSTIN mismatch SB0
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e is no provision of amendment in the shipping bill once the EGM is filed. Q. 15 What should be done for error code SBOO4? Ans. This error occurs due to duplicate/ repeats transmission of shipping bill-invoice record from GSTN. The previous transmission would have already been validated for IGST refund by ICES. Q. 16 What should be done for error code SBOO5? Ans. This is the most common error committed by the exporters, which occurs due to mismatch of invoice number as declared in the invoice table of the shipping bill and that declared in the GSTR 1 for the same supply. This can happen due to: Typographical mistake while entering data in GSTR 1 or the The exporter uses two sets of invoices, one invoice for GST and another invoice for exports resulting in mismatch of invoice numbers. After the implementation of GST, it was explained in the advisories that the details an exporter is required to enter in the "invoice" column while filing the SB pertains to the invoice issued by
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e CGST Rules, 2017. The said mechanism is expected to be available shortly. It may, however be noted that these Interim workarounds shall only be available as a onetime measure for the past SBs. It is advised that the exporters should take care so as not to repeat such mistakes in future and ensure that the same GST compliant export invoice is declared at both ends. Q. 17 What should be done for error code SBOO6? Ans. In cases of exports through ICDs, if the gateway EGM is not filed electronically or it contains some error, response code SB006 appears. It is noticed that gateway EGM In case of many ICD shipping bills have been manually filed, leading to such refunds not being processed. While the Customs at gateway ports are pursuing this matter with the shipping lines, the exporters can also approach their shipping line to file the EGMs electronically. Q 18. What Is the exporters' role In case of IGST refunds? Ans. Exporters have to ensure that only correct as well as sufficient i
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t still the refund has not been received in the bank account? Ans. SB000 (Successfully Validated) is the response code which comes when all the decided parameters like GSTIN, SB number, invoice number etc. match between GSTN and Customs database. This code implies that the SB is ready for inclusion in the IGST refund scroll. Howeve, it might happen that even with SB000, the SB does not appear in the refund scroll. This could be due to: (i) The exports might have been made under bond or LUT, hence not eligible for refund. (ii) If a shipping bill covers multiple invoices, few of the Invoices might have been successfully validated with code SB000 whereas other invoices might be containing other types of error/s (iii) Composite rate of drawback has been claimed For that SB during the transitional period between 01.07.2017 to 09.2017, thus making the SB ineligible for IGST refund. (iv) Where the IGST claimed amount is less than ₹ 1000/-. In all the above cases, the scroll amount shall
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furnish correct bank account details to the proper officer (Customs field formation) in order to update the same in ICES. (iv) As the status of refund claims is available in ICEGATE login, in cases where the corrective action has been already taken by the exporter, he may write to ICEGATE/gateway port Customs for redressal. (v) In general, any grievance related to the IGST refund claim may be brought to the notice of the Pr. Commissioner or Commissioner of the Customs of the gateway port for necessary action. Common Errors and Rectification Procedures Code Meaning Rectification SB000 Successfully validated SBOO1 Invalid SB details Amend GSTR-1 by using Form 9A and fill correct SB details SB002 EGM not filed Approach shipping line for filing of EGM SB003 GSTIN mismatch Amend GSTR-1 by using Form 9A SB004 Record already received and validated No action required SB005 Invalid Invoice Number Amend GSTR- 1 by using Form 9A and fill correct SB006 Gateway EGM not available Approach shipping
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