Sanction of pending IGST refund claims

NO. CLE-HO/POL/GST/18-19
May 30, 2018

Members of the Council

Sub : Sanction of pending IGST refund claims where the records have not been transmitted from the GSTN to DG Systems – reg.

Dear Member

The Central Board of Indirect Taxes and Customs (CBIC) has issued a Customs Circular No.12/2018 dated 29th May 2018 (copy enclosed) on the above subject. The highlights of this circular are as follows.

A validation has been introduced in the GSTN system to ensure that the IGST paid on the export goods in any particular month ( mentioned in 3.1b of GSTR 3 B) is not less than the refund claimed by the exporter (mentioned in table 6A of GSTR 1).

b)     As a result of mismatches in the amount of IGST paid on export goods between GSTR 1 and GSTR 3 B, the transmission of records from GSTN to Customs EDI system has not happened and consequently IGST refund could not be processed

c)     In view of the above, the following procedure is being prescribed to overcome the problem of refund blockage.

1) In cases where cumulative IGST paid amount (on export goods and inter-state domestic outward supplies) for the period July 2017 to March 2018 indicated in GSTR 3 B is greater than or equal to the cumulative IGST amount indicated in GSTR 1 for the same period, GSTR will send mail to such exporters regarding transmission of records to Customs EDI.

2) In cases where cumulative IGST paid amount (on export goods and inter-state domestic outward supplies) for the period July 2017 to March 2018 indicated in GSTR 3 B is less than the cumulative IGST amount indicated in GSTR 1 for the same period, GSTR will send mail to such exporters informing that their records are held up due to short payment of IGST. Such exporters would have to make payment of IGST equal to the short payment in GSTR 3 B of subsequent months so as to ensure that the total IGST refund being claimed in the GSTR 1 is paid. The proof of payment of IGST will be submitted to Asst/Deputy Commissioner of Customs in charge of port from where exports were made. The exporter has to submit proof of payment (Self certified copy of challan) to the concerned Customs office (along with the CA certificate that the shortfall IGST amount has been liquidated if IGST refund amount for the period is more than Rs.10 lacs) and also an undertaking that they could return the refund amount in case it is found to be not due to them at a later date. The Customs will then forward list of such exporters to Customs Policy Wing , DG (Audit) and DG (GST) and Customs Policy wing shall forward the list to GSTN and GSTN shall transmit the records of these exporters to the Customs EDI system.

In both the above cases, the exporters whose IGST refunds are processed/sanctioned will have to submit certificate from Chartered Accountant before October 31, 2018 to the Customs at the port of export to the effect that there is no discrepancy between the IGST amount refunded on the exports and actual IGST paid on exports for the period July 2017 to March 2018 and the copy of the certificate needs to be given to the concerned GST jurisdicational office also.

Members may kindly note the above. Please refer the enclosed Customs Circular No. 12 dated 29.5.2018 for more details.

Thanks and regards

R.Selvam IAS
Executive Director
COUNCIL FOR LEATHER EXPORTS