Refund of IGST paid on export of goods

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Oct. 11, 2017

Members of the Council

Sub : Refund of IGST paid on export of goods

Dear Member

As members are aware, there are two options for export of goods – exporting without payment of applicable IGST on the export product through submission of Letter of Undertaking (LUT) or by exporting the goods by paying the applicable IGST and then claiming refund of the same.

The Central Board of Excise and Customs has issued a GST Instruction No. 25/2017 dated 9.10.2017 (copy enclosed) regarding refund of the IGST paid on export products. The following are the highlights.

1)        The Shipping Bill filed by an exported shall be deemed to be an application for refund of IGST on goods exported out of India once the Export General Manifest (EGM) is filed and valid return in form GSTR 3 or GSTR 3 B, as the case may be , has been filed.

2)    Filing of correct EGM is a must for treating Shipping bill or Bill of exports as a refund claim.

3)    The details of zero rated supply declared in Table 6A of return in form GSTR-1 (GST return form for outward supply of goods) shall be matched electronically with Customs System.

4)    For the month of August, 2017 the refund process which will start from 18th October, GSTN is making available a separate utility for filing details in Table 6A of GSTR-1 on the GSTN web portal. Members submit the requisite details once GSTN develops the utility.

5) the refund will be credited to Bank account of exporter registered with Customs even if it is different from the bank account of the applicant mentioned in his GSTN registration.

Members may kindly note the above.

Thanks and regards

R. Ramesh Kumar
Executive Director