Clarification on exports related to GST refund issues

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No. CLE-HO/POL/GST/17-18
March 16, 2018

Members of the Council

Sub : Clarification on exports related to GST refund issues

Dear Member

The Central Board of Excise and Customs, Ministry of Finance has issued a GST Circular No. 37/11/2018-GST dated 15th March 2018 (copy enclosed) on the above subject. The highlights of the circular are as follows.

a) A supplier (exporter) availing drawback only with respect to Basic Customs duty shall be eligible for refund of unutilized input tax credit of central tax/ state tax/ Union Territory Tax/ Integrated Tax/ Compensation Cess.

b) If a tax payer has committed an error while entering the details of invoice/shipping bills/bill of export in Table 6 A or Table 6 B of Form GSTR1 (return for outward supplies), the same can be rectified in Table 9 of Form GSTR 1 in the subsequent period.

c) In case of discrepancies between the data furnished by the exporter in Form GSTR 3 B (summary export return) and Form GSTR 1 (return for outward supplies), the refund application will be processed as per provisions of GST Circular No. 26/2017 dated 29.12.2017. This circular states that errors committed while filing GSTR 3 B can be corrected while filing GSTR 1 of the same month

d) In some cases, zero rated supplies (exports) have been made before filing Letter of Undertaking (LUT) and refund claims for unutilized input tax credit have been filed. Substantive benefits of zero rating may not be denied where it has been established that exports in terms of relevant provisions have been made. The delay in furnishing of LUT in such cases may be condoned and the facility for export under LUT may be allowed on ex- post facto basis taking into account the facts and circumstances of each case.

e) Apart from the documents listed in the table below, no other documents should be called for from the tax payers for refund of GST Input Tax Credit (ITC) unless the same are not available with the officers electronically

Export (goods or services) without payment of Tax (Refund of accumulated ITC on IGST/CGST/SGST/UTGST etc.,) - Copy of form RFD 01 A filed on common portal
- Copy of Statement 3 A of Form RFD 01 A generated in common portal
- Copy of Statement 3 of Form RFD 01 A
- Invoices with respect to input and output services
- BRC/FIRC for export of services
- Undertaking /Declaration in Form RFD 01 A

This circular also contains regulations on refund of transitional credit, GST refund in cases where there is discrepancy between values of GST invoices and shipping bill/bill of export etc.,

The instructions contained in the aforementioned GST Circular No. 37/11/2018-GST dated 15th March 2018 shall apply to exports made on or after 1st July 2017.

Members may kindly note the above

Thanks and regards

R. Ramesh Kumar
Executive Director

CGST Circular