Exporters Advised to File July GSTR-1 to
Match with Shipping Bill to Get GST Refund from 10 Oct 2017
·
Bank Detail in Customs Drawback Must Match with GST
Registration
·
Aug GST Refund to Wait for GSTN Opening
[Ref:
Instruction No.15/2017-Customs dated 9 October 2017]
Sub: Refund
of IGST paid on export of goods under Rule 96 of CGST Rules 2017
As you are aware, Rule 96 of the CGST Rules 2017 deals with refund of Integrated Tax paid on goods exported
out of India. It provides that the shipping bill filed by an exporter shall be deemed
to be an application for refund of integrated tax paid on the goods exported out
of India once export general manifest (EGM) and valid return in Form GSTR-3 or Form GSTR- 3B, as the case may be has been filed. Once these conditions
are met, the Customs System shall process the claim for refund and an amount equal
to the integrated tax paid in respect of each shipping bill or bill of export shall
be electronically credited to the bank account of the applicant mentioned in his
registration particulars and as intimated to the Customs authorities.
2. The Committee
on Exports setup by the GST Council has recommended that IGST refunds for exports
made in July 2017 must start by 10.10.2017. This recommendation has been endorsed
by GST Council in its meeting on 06-10-2017. Necessary background work is being
done by the Directorate General of Systems, GSTN and Controller General of Accounts
(PFMS). In order to ensure that refunds start smoothly, following guidelines are
issued for the field formations-
Export General Manifest
3. Filing of
correct EGM is a must for treating shipping bill or bill of export as a refund claim.
Commissioners must ensure that the concerned airlines/shipping lines/carriers file
EGM/Export report within prescribed time. Cases which remain in EGM error due to
any reason should be followed up to ensure that records are updated at the gateway
port, especially for ICDs. Exporters may be advised that they should follow up with
their carriers to ensure that correct EGM/export reports are filed in a timely manner.
Details of export supplies in Table 6A of GSTR-I
4. The details
of zero rated supplies declared in Table 6A of return in Form GSTR-I are matched electronically with the corresponding details
available in Customs Systems as per details provided in shipping bills/ bill of
export. Thus exporters must file their GSTR-1 very carefully to ensure that all relevant details match. For their convenience,
the details available in the Customs System have been made available for viewing
in their ICEGATE login.
4.1 Exporters who have not filed their GSTR-1 for month of July 2017 may be advised to do so immediately.
4.2 For month of August 2017 and subsequent months, facility
of filing GSTR-1 has not been made available by GSTN at present. In order to facilitate processing
of refunds, GSTN is making available a separate utility for filing details in Table 6A of GSTR-1 on the GSTN Web portal. Exporters may be advised to
submit the requisite details once GSTN develops the utility.
Valid return in Form GSTR-3 or Form GSTR-3B
5. Filing of valid return in GSTR-3 or GSTR-3B is another pre-condition for considering shipping bill/Bill
of export as claim for refund. Exporters may be advised that they must file these
returns expeditiously without waiting for the last date, to ensure that their refund
is processed in a timely manner.
Bank account details
6. As per Rule 96 of CGST Rules 2017, the refund is to be credited in the bank account of
the applicant mentioned in his registration particulars. As a practice, exporters
have been declaring details of bank account to Customs for the purpose of drawback
etc. There is a possibility that bank account details available with Customs do
not match with those declared in the GST registration form. In order to ensure smooth
processing and payment of refund of IGST paid on exported goods, it has been decided
that said refund amount shall be credited to the bank account of the exporter registered
with Customs even if it is different from the bank account of the applicant mentioned
in his registration particulars. However, exporters may be advised to either change
the bank account declared to Customs to align it with their GST registration particulars
or add the account declared with Customs in their GST registration details.
6.1 Further, as the refund payments are being routed
through the PFMS portal, the bank account details need to be verified and validated
by PFMS. The status of validation of bank account with PFMS is available in ICES.
Exporters may be advised that if the account has not been validated by PFMS, they
must get their details corrected in the Customs system so that their bank account
gets validated by PFMS. Exporters are also advised not to change their bank account
details frequently to avoid delay in refund payment.
Processing of refund claims
7. Proper officer
of each jurisdiction shall generate a payment scroll of eligible IGST refunds in
the same manner as RoSL scrolls are generated. The scroll
shall be transmitted electronically to PFMS system for onward payment into their
bank accounts. Unlike RoSL where paper scrolls are to
be sent by field formations, in this case, electronic verification will be done
centrally by a DDO appointed in this regard. Detailed EDI procedure for processing
of claims and generation of refund scrolls is being circulated by Directorate of
Systems, CBEC. DG-Systems is also laying down the procedure for payment and accounting
in consultation with Pr. CCA CBEC and CGA of India. Proper officers may be designated
in each Commissionerate, who should be in readiness to
start generating refund scrolls from 10.10.2017 onwards.
Handling of cases under Rule 96(4)(a)
8. Sub rule 4a
of aforesaid Rule 96 provides that refund is to be withheld if a request
has been received from the jurisdictional Commissioner of central tax, State tax
or Union territory tax to withhold the payment of refund in accordance with the
provisions of sub-section (10) or sub-section (11) of section 54. In such cases, the proper officer of integrated tax
at the Customs station has to intimate withholding of refund to the applicant and
the jurisdictional Commissioner of central tax, State tax or Union territory tax,
as the case may be, and a copy of such intimation has to be transmitted to the common
portal.
8.1 The Commissioners should put in place a mechanism
for keeping record of such intimations received from jurisdictional Commissioner
of central tax, State tax or Union territory tax and ensuring that refunds are not
processed and sanctioned in such cases. Necessary communication to the applicant
and the jurisdictional Commissioner of central tax, State tax or Union territory
tax, in respect of claims withheld should be promptly sent. Mechanism to communicate
the same to Common portal is being worked out and shall be communicated separately.
Exports in violation of the provisions of the Customs Act, 1962
9. In case where
proper officer determines that the goods were exported in violation of the provisions
of the Customs Act, 1962, IGST refund has to be withheld in terms sub rule 94(4)(b)
of aforesaid Rule 96. Accordingly, necessary action in such cases to ensure
that IGST refund is withheld should be taken.
10. Guidelines
and procedures for filing and processing of refunds of IGST paid on export goods
for exports made under manual (non-EDI) shipping bills shall be communicated separately.
11. Suitable
trade notices and standing orders should be issued for guidance of trade and officers
respectively. Difficulties, if any, may be brought to the notice of the Board.
F. No. 450/119/2017-Cus IV