IGST refunds on goods exported out of India
TRADE NOTICE NO. 03/2018 Dated:- 19-2-2018 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS
GST BHAVAN, 41/A, SASSON ROAD, PUNE-411001
F. No. VIII/Cus/Tech/PN&SI/48-47/2016
Pune Dated: – 19.02.2018
TRADE NOTICE NO. 03/2018
Subiect : reg.
Attention of all Importers/ Exporters/ Customs Brokers and the Members of the Trade is drawn to notice issued under F. No. 450/1 19/2017 -Cus IV, dated 15.02.2018 by the Director (Customs), Ministry of Finance, Department of Revenue, Central Board of Excise and Customs, New Delhi.
2. In this context, Board has been continuously receiving representations from exporters and trade association in relation to pending IGST refund. In order to bring clarity amongst the exporters/ trade associations, it has been decided to release Frequently Asked Questions (FAQ) on IGST refund which may be circulated to create awareness amongst the EXIM community.
3. FAQ's is enclosed herewith in A
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
, 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 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
Q.4 Who can get IGST refunds from Customs?
Ans. The registered persons who have exporte
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
y 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?
Ans. It has been observed that a number of records 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ind 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 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
Document 3
report can be generated at the end of field officers. Even the exporter has the optic
check the GST validation status for his shipping bills in his ICEGATE website login f
records transmitted by GSTN.
Q. 11 I have filed correct information in GST return but still my refund is not sanction
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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
illing 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
Document 4
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 SB004?
Ans. This error occurs due to duplicate/repeat transmission of shipping bill
invoice record from GSTN. The previous transmission would have already been
validated for IGST refund by ICES.
Q. 16 What
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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 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
Document 5
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 these interim workarounds shall only be available as a one-
time measure for the past SBs. It is advised that the exporters should take care so
as not to repeat such mistak
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
erever data has been received from GSTN.
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.
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.
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 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. T
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s 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:
When the records have not been transmitted by GSTN to Customs, exporters
may contact GSTN helpdesk.
i)
ii)
iii)
iv)
v)
Wherever the error is SB002/SB006, exporter may approach their shipping
line/airline/carrier to file the EGM immediately.
In cases where the temporary scroll is generated but it's not included in 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.
As the status of refund claims is available in ICEGATE login, in ca
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =