Meeting convened by Member (Customs) on GST refund

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No. CLE-HO/POL/GST/18-19
April 13, 2018

Members of the Council,

Sub : Meeting convened by Member (Customs) on GST refund

Dear Member

This is to inform that Chairman, CLE participated in the meeting convened by Member (Customs), Central Board of Excise and Customs (CBEC), Government of India on March 23, 2018. Several key points were highlighted by Senior Government officials in the meeting to quicken the process of GST refund. These points are detailed below for kind information of members.


–         Various kinds of errors have been committed by exporters while filing GST returns and the combination of these errors make it very difficult for a standalone solution to be found for rectification of errors.

–         The errors committed by exporters can be broadly classified into 2 categories.

–         In the first category are those errors which prevent the data in respect of refunds being pushed from GSTN to CBEC. These include filing of correct GSTR 1 (GST monthly return for outward supplies) but duty payment details not filed in appropriate column in GSTR 3 B, correct details including cess not provided in Table 6 A (of GSTR 1) or the details of shipping bills are not given.

–         The second category of errors are those errors because of which though the data has been received by CBEC but because of mismatch, refunds do not get sanctioned. This contains invoice mismatch contributing to about 30% to 35% of the cases, non-filing of EGMs at ICDs and at gateway ports, wrong filing of GSTN No./ Shipping Bills. For correcting invoice mismatch, a circular has already been issued providing for an officer based interface for processing the refunds. All the Chief Commissioners have been sensitized for coordinating with the shipping lines for filing EGMs at gateway ports and at ICDs which is being monitored on a daily basis by CBEC. On ICEGATE, the exporters can see what the errors are and can take action accordingly.

–         There is an issue of error in filing GSTR 3 B (GST summary monthly return) where instead of IGST paid for exports which is to be reflected in Table 3.1 (B) of GSTR 3 B, the said amount has been mistakenly filed in Table 3.1 (A). For solving such errors, the matter is being discussed with GSTN to find a solution.


–         Chairman, CLE informed that even in cases of export of goods, copy of bank realization certificate is being asked for by the officers.

–         It was informed that small scale sector having a turnover of less than Rs.1.5 crore are mostly with State Authorities (i.e. GST jurisdiction is with Commercial Taxes Department of State Government) who are also being sensitized through various DO letters from Revenue Secretary.

–         GST Circular No. 37/11/2018-GST dated 15th March 2018 states that apart from the documents listed below, no other documents should be called for from the tax payers for refund of GST Input Tax Credit (ITC) for export of goods unless the same are not available with the officers electronically

–        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
–        Undertaking /Declaration in Form RFD 01 A

–         Hence, if any member faces delay in refund of GST on account of requirement of BRC, the same may be informed to CLE so that we can accordingly take-up the issue.

EGM filing

–         Chairman, CLE also took-up the issue of problems in filing of EGM at gateway port for which it was replied that monitoring of filing of EGMs at ICDs and gateway ports is being monitored by Chief Commissioners.

Delay in IGST refund

–         Chairman, CLE also took-up the issue of delay in refund of IGST wherein the credit in particular month is less than IGST claim. It was replied that this is being looked after by GST Policy Wing.

Bank Account Details

–         Exporters have to ensure that their bank accounts get validated ( for processing GST refunds) and they should preferably give the same bank account number with Customs and GST authorities.

Members may kindly note the above.

Thanks and regards

R. Selvam IAS
Executive Director