Frequently asked Questions on IGST refunds on goods exported out of India
08\/2018 Dated:- 23-2-2018 Trade Notice
Customs
GOVERNMENT OF INDIA
\nMINISTRY OF FINANCE
\nDEPARTMENT OF REVENUE
\nOFFICE OF THE COMMISSIONER OF CUSTOMS
\nCUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-682009
\nF.No.S34\/40\/2017 DBK.CUS
\nDate: 23.02.2018
\nPUBLIC NOTICE NO. 08\/2018
\nSub: Frequently asked Questions on IGST refunds on goods exported out of India
\nThe 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.
\nSUMIT KUMAR
\nCOMMISSIONER OF CUSTOMS
\nFrequently Asked Questions on IGST refunds on goods exported out of India
\nQ1 What is zero rated supply under GST?
\nAns. Under GST, exports and supplies to SEZ <\/p>\n
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\nQ3. What Is IGST refund?
\nAns. 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:
\n(i) Exporter of goods
\n(ii) Service exporters and persons making supplies to SEZ
\nQ4. Who can get IGST refunds from Customs?
\nAns. 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.
\nQ. 5 How to file application for getting IGST refund from Customs?
\nAns. 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 applica<\/p>\n
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\nAns. The IGST refund would not be processed if it fails any validation at the level of either GSTN or Custom system. A validation error occurs due to various deficiencies which are enumerated here-in-after.
\nQ. 8 What are the reasons for data not being transmitted from GSTN to Customs System?
\nAns. 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 :
\n(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.
\n(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.
\n(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 <\/p>\n
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\nQ. 11 I have filed correct Information in GST return but still my refund Is not sanctioned?
\nAns. 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.
\nThe 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 t<\/p>\n
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\nQ. 15 What should be done for error code SBOO4?
\nAns. 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.
\nQ. 16 What should be done for error code SBOO5?
\nAns. 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:
\n * Typographical mistake while entering data in GSTR 1 or the
\n * The exporter uses two sets of invoices, one invoice for GST and another invoice for exports resulting in mismatch of invoice numbers.
\nAfter the implementati<\/p>\n
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\nFor 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 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.
\nQ. 17 What should be done for error code SBOO6?
\nAns. 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<\/p>\n
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\nQ. 19 The shipping bill has been transmitted by GSTN to Customs and there is no error in the refund, But still the refund has not been received in the bank account?
\nAns. 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:
\n(i) The exports might have been made under bond or LUT, hence not eligible for refund.
\n(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
\n(iii) Composite rate of drawback has been claimed For that SB during the transition<\/p>\n
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\n(iii) In cases where the temporary scroll is generated but its 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.
\n(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.
\n(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.
\nCommon Errors and Rectification Procedures
\nCode
\nMeaning
\n Rectification
\nSB000
\nSuccessfully validated
\nSBOO1
\nInvalid SB details
\nAmend GSTR-1 by using Form 9A and fill correct SB details
\nSB002
\nEGM not filed
\nApproach shipping line for filing of EGM
\nSB003
\nGSTIN mism<\/p>\n
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