Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 180223-01 – 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 prescribed, without payment of integrated tax and claim refund of unutilised input tax credit of CGST, SGST/UTGST
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T 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 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 err
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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 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 present, the Customs system, does not have any
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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 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. Export
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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 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 SB005 is due to a data entry mistake in GSTR-1, it can be amended in Form 9A. But any mistake in the SB cannot b
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ced 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 option 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. (ii
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overs 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 zero and the SBs shall not be included in the refund scroll. 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 co
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