Frequently asked questions (FAQs) related to IGST Refunds
PUBLIC NOTICE NO. 12/2018 Dated:- 15-3-2018 Trade Notice
Customs
GOVERNMENT OF INDIA
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE THE PRINCIPAL COMMISSIONER OF CUSTOMS (AIR CARGO),
CHENNAI-VII COMMISSIONERATE,
NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI – 600027.
F. No.: S.Misc.09/75/2017- EXP.(Air)
Dated: 15.03.2018
PUBLIC NOTICE NO. 12/2018
Subject: Reg.
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Kind attention of Exporters, Members of Trade, Customs Brokers, Industry Associations and other stake holders are invited to Boards Instructions 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 refunds. In order to bring clarity, the Frequently Asked Questions (FAQs) on IGST refund issues are enclosed herewith for the benefit of the Exporters/ Trade a
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the CGST Act, 2017; under either of the following options, namely:.
(1) He may supply goods or services or both under bond on 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.
Q3 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
Service exporters and persons making supplies to SEZ
Q.4 Who can get IGST refunds from C
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nism 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?
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 validati
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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 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
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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 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 ret
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ch 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.
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Q. 13 What should be done for error code SB002?
Ans. Exporter has to approach their shipping line/airline/carrier to file the EGM
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immediately.
Q. 14 What should be done for error code SB0037
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 tran
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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 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
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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 p
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. This report shows the response/error
code for each of his SBs wherever 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 retums and ensure that the details are entered accurately in the returns.
as well so that no mis-match occurs.
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(II) 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 Validated) is the response code which comes when all the
decided parameters like G
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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:
When the records have not been transmitted by GSTN to Customs, exporters
may contact GSTN helpdesk.
i)
iii)
iv).
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
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