Refund of IGST on export – EGM error related cases

  1. Home
  2. CLE
  3. Refund of IGST on export – EGM error related cases

March 22, 2018

Members of the Council,

Sub : Refund of IGST on export – EGM error related cases

Dear Sirs,

As members are aware, exporters have the option of paying applicable Integrated GST (IGST) on export products (on which refund of IGST is applicable) or go for zero rated exports option (wherein products are exported without payment of GST) and then claim refund of GST paid on inputs i.e. refund of GST Input Tax Credit.

The Central Board of Excise & Customs, Dept of Revenue has issue Customs Circular No.06/2018-Cus dated 16/03/2018 regarding Refund of IGST on Export EGM Error related cases. The highlights of the circular are as follows.

  1. The other main category of errors holding up the refunds in Inland Container Depots (ICDs) is related to either non- filing of Export General Manifest at the gateway port or information mis-match between local and gateway EGMs.
  1. As per Rule 96 of the CGST Rules 2017, the shipping bill filed by an exporter shall be deemed to be an application for refund of IGST paid on the goods exported out of India, once both the Export General Manifest (EGM) and valid return in Form GSTR-3 or Form GSTR- 3B as the ease may be has been filed. In other words, filing of EGM, apart from filling of shipping bill and GSTR 3B is a mandatory requirement for processing refund claim. The Shipping lines agents have been filing EGM electronically for exports originating from gateway ports. However, for cargo originating from ICDs, the Shipping lines/agents were tiling EGM in manual mode. Absence of electronic EGMs and their integration with local EGMs has been the major obstacle in processing of refund claims in the case of exports from ICDs.
  1. In order to overcome this issue, the Shipping lines have been mandated to include the shipping bills originating from ICDs while filing the electronic EGMs at the gateway ports. In cases where the EGMs have not incorporated the shipping bills pertaining to ICDs. the Shipping lines/agents have been asked to file supplementary EGMs.
  1. In order to ensure a hassle free processing of refund claims, the following steps may be ensured by the jurisdictional officers in ICDs: (a) filing of local EGM i.e train or truck summary, as the case may be, immediately after cargo leaves the port, (b) liaising with jurisdictional officers at gateway port for incorporation of Shipping Bills pertaining to the cargo originating in ICDs, in the EGMs filed at gateway port by the Shipping lines/agents (c) rectification of errors in local and gateway EGM, wherever necessary.
  1. The jurisdictional officers at the gateway port should strictly monitor the EGM pendency and error reports available in ICES. The officers at the gateway port have to resolve the EGM errors in an expeditious manner by asking the Shipping lines agents to file requisite amendments and approving those amendments on ICES. In cases, where there are errors either in the shipping bill or in the local EGM (i.e. truck or train summary), the remedial action has to be taken by jurisdictional officer in ICD.”


Members may please note the above.


Thanks & regards,


R Ramesh Kumar,

Executive Director