FAQ on IGST refunds on goods exported out of India dated 23-02-2018
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q.1 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 chain of a particular supply is tax free, i.e., there is no burden of tax either on the input side or output side.
Q.2 What are the options for getting refunds for persons making zero rated supplies?
Ans. As per Section 16(3) of 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, 2017, 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 prescribe
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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 valid return in Form GSTR-3 or Form GSTR-3B, as the case may be, has been filed. Thus, once the shipping bill and the EGM is filed and a valid return is filed, the application for 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 r
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nderstood 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 are incomplete, e.g., details of shipping bill and port number/code are 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 of the amount of IGST paid.
Q.9 What steps are to be taken in cases of errors mentioned above and who should be contacted in such cases?
Ans. Correction of errors need to be done in the GST return filed. Table 9A has been provided to carry out those corrections. If the exporter finds that even after the correct filing of return, their shipping bills do not refle
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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
SB001
Invalid SB details
SB002
EGM not filed
SB003
GSTIN mismatch
SB004
Record already received and validated
SB005
Invalid invoice number
SB006
Gateway EGM not available
Q.12 What should be done for error code SB001?
Ans. This may occur due mention of wrong shipping bill numb
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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 SB005?
Ans. This is the most common error committed by the exporters, which occurs due to mis-match 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 :
(i) Typographical mistake while entering data in GSTR-1 or the SB.
(ii) 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 him compliant to GST Invoice Rules. The invoice number shall be matched with GSTN to validate exports and IGST payment It was convey
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unds 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 SB006?
Ans. In case 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 information is filed by them in both the GSTN and the Customs system.
(i) The exporter has the opt
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00 (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 databases. This code implies that the SB is ready for inclusion in the IGST refund scroll. However, 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 1-7-2017 to 30-9-2017, 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 automatically become zer
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n the final scroll, the exporters are advised to 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
SB001
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
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