Refund of IGST on Export – Invoice mis-match cases – alternative mechanism cases and clarifications in other cases
March 26, 2018
Members of the Council
Sub: Refund of IGST on Export – Invoice mis-match cases – alternative mechanism cases and clarifications in other cases.
As you are aware, exporters have the option of
Paying applicable Integrated GST (IGST) on export products (on which refund of IGST is applicable)
Go for zero rated exports option (wherein products are exported without payment of GST by submitting Letter of Undertaking) and then claim refund of GST paid on inputs i.e. refund of GST Input Tax Credit.
INVOICE MISMATCH CASES
a) As per Customs Circular No.05/2018-Customs, dated 23.02.2018 (copy enclosed),exporters who could not get IGST (on exports) refund on account of mis-match of invoices nos. in GST returns and Shipping Bill (SB005 error), were given the option of submitting those details of GST and Shipping Bill Invoice details in prescribed format to the Customs authorities, for processing IGST refund. This facility was applicable only for shipping bills filed till 31.12.2017
b) Now, a Customs Circular No. 08/2018 dated March 23,2018 (copy enclosed) has been issued extending the above facility of giving invoice mismatch details to Customs for IGST refund in respect of shipping bills filed till 28.2.2018
EGM ERROR CASES
c) Customs Circular No.06/2018-Cus dated 16/03/2018 stated that 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.
d) The Guide on IGST refunds issued some time back by Central Board of Excise and Customs stipulates that the shipping lines have to mention ICD Shipping Bill details in the EGM filed at gateway port with the transference copy received from gateway port. Now, Customs Circular No. 08/2018 dated March 23,2018 states that in-lieu of transference copy, either final bill of lading issued by shipping lines of written confirmation from Custodian of Gateway port may be treated as valid document for the purpose of integration with the EGM.
e) Aforementioned Customs Circular No. 08/2018 dated March 23,2018 also states that exporters who have made a mistake by not mentioning IGST paid details (IGST paid on export products) in their shipping bill can get IGST refund through an officer interface where an officer can verify and satisfy himself of the actual payment of IGST based on GST return information forwarded by GSTN.
Thanks and regards
R. Ramesh Kumar