General Advisory on Refund of IGST paid on Exports of Goods with Payment of Tax

[Praveen Nair]

This is with reference to the processing of invoices of GSTR 1 pertaining to the export of goods with payment of IGST by the GST System, and transmission of validated invoices to ICEGATE for refund of IGST paid on exports of goods. 

As per Rule 96, the refund of IGST paid on export of goods is processed and disbursed by Customs. The GST System validates invoice data filed under Table 6A of GSTR 1 based on certain rules, which are specified in Para-E of this advisory, and transmits to ICEGATE for further validation and disbursement of refund.

1. It has been observed that many records are failing validation at GST System, and hence data hasn't got transmitted to ICEGATE. The following are top reasons for validation failures:
   1. Export Invoices filed in Table 6A of GSTR 1 did not have information of SB Number, SB Date or Port Code,
   2. Total IGST, payable through export invoices specified under Table 6A of GSTR 1, is not specified correctly under Table 3.1(b) of GSTR 3B and incorrectly mentioned under Table 3.1(a) or Table 3.1(c) of GSTR 3B,
   3. IGST submitted under Table 3.1(b) of GSTR 3B is less than total IGST, payable through export invoices specified under Table 6A of GSTR 1 of that tax period.
   4. Taxpayer mentioned LUT under Shipping Bills, whereas declare such export as IGST paid, under GST System.

2. Further, it has also been observed that some taxpayers who had filed GSTR 1E (Table 6A) with deficiencies, due to which their refund of IGST paid on export didn't process, subsequently, filed GSTR 1 with corrected data of Table 6A. However, such data was not allowed to be integrated again in Table 6A because the taxpayer had already filed his GSTR 1E (Table 6A). In such case, the taxpayer has to amend his Table 6A data through Table 9A of subsequent GSTR 1.

3. Some invoices, which were successfully validated by GST System and transmitted to ICEGATE, failed validations at ICEGATE. The following are the main reasons:
   1. Mismatch in invoice number and date of the invoices filed in GST System and invoices submitted in SB at customs.
   2. Mismatch of port code given in invoice filed in GST System and the invoices given in SB at customs
   3. Mismatch of other details of invoices filed at GST System and invoices filed with SB like value, IGST amount etc.

4. Due to such validation failures, the refund of IGST paid on exports is impacted and not processed. Therefore, exporters/taxpayers are hereby requested to follow the following advisory so that they may file their returns (GSTR 1/ GSTR3B) correctly, ensuring that their refund of IGST paid on export of goods are processed successfully.

Advisory to the Exporters for Refund of IGST Paid on Export of Goods

To ensure that the GST System transmits invoice data, for refund of IGST paid on exports of good, the exporters are advised to provide Complete and Correct Data as per the points given below:

1. File GSTR 1 for the corresponding tax period, and ensure that:
   1. Invoice data for export of goods is provided in Table 6A of FORM GSTR 1 for the relevant tax period
   2. Invoice numbers provided in Table-6A of FORM GSTR 1 are same as that of the invoice details given in Shipping Bill.

(The invoice with different invoice number/date than given in shipping bill will be rejected by ICEGATE)

3. Select WPAY (with payment of tax) from drop down given in Table 6A as "invoice type".

(Invoices selected as WOPAY (without payment of tax) are not eligible for refund from ICEGATE)

4. Shipping bill number, shipping bill date and port code (originating port) etc. are to be specified mandatorily and correctly, in case of export of goods.

(Invoices, which don't have these details, shall not be sent to ICEGATE for further processing, because such invoices are treated and export of services.)

5. Port code is alphanumeric six character code as prescribed by ICEGATE. Port codes are available at ICEGATE under https://www.icegate.gov.in/SMTPList.html

(Invoice, which have incorrect port code, are likely to get rejected by ICEGATE)

2. While filing GSTR 3B Return for the said tax period, please ensure that:
   1. IGST amount to be paid on export of goods/services outside India or to SEZ etc. are filed under Table 3.1 (b) and not under Table 3.1(a) or 3.1(c) of GSTR 3B,
   2. IGST amount filed in Table 3.1(b) of GSTR 3B is either equal to, or greater than the total IGST shown to have been paid under Table 6A, and Table 6B of GSTR 1

(NONE of the export invoices shall be processed for transmission to ICEGATE if correct IGST amount is not mentioned and paid through Table 3.1(b) of GSTR 3B)

Advisory on upcoming facility to the Exporters for modification of GSTR 1 and adjustment of GSTR-3B data, where taxpayer has committed some mistakes:

1. The taxpayers may modified their incorrect invoice data of Table 6A through Table 9A of subsequent tax period.
   1. Missing Shipping Bill details or port code detail can be completed
   2. Incorrect invoice numbers or other details can be corrected
   3. While amending invoice data, the taxpayers are required to mention their original invoice mandatorily.
2. As per circular number 26/26/2017, dated 29-Dec-2017, issued by CBEC, anomalies in filing of GSTR-3B as specified under Para A of this document may be adjusted while filing GSTR 3B of subsequent tax period.
   1. If IGST paid on exports has been declared in Table 3.1(a) or Table 3.1(c) instead of Table 3.1(b), and IGST shown to have been paid under Table 6A of GSTR 1 of that tax period, appropriate adjustment may be done in subsequent month
   2. If IGST paid on exports has been declared as ZERO in Table 3.1(b), whereas, IGST shown to have been paid under Table 6A of GSTR 1 for that tax period, the correct amount can be declared and offset while filing GSTR 3B of subsequent tax period.
   3. If IGST paid on exports declared in Table 3.1(b) is lesser that the total IGST shown to have been paid under Table 6A and Table 6B of GSTR 1, differential amount of IGST can be paid through GSTR 3B of subsequent tax period.

In all these cases, GST System shall aggregate the amount of IGST shown to have been paid under Table 6A/6B and 9A of GSTR 1 and the aggregate IGST amount actually paid through Table 3.1(b) and validation will be done on the basis of cumulative IGST amount of multiple tax period.

Discussions to this article

[kamalakara ks]

Sir

Thanks for very useful article. we have shown export with payment of IGST in Table 3(1) (a) of GSTR3B instead 3(1) (b). and declared in 6A of GSTR1 It is mentioned that appropriate adjustment may be done in subsequent month. Kindly explain how do make appropriate adjustment in GSTR 3B in subsequent month .

[Harish Kohli]

Sir

This is with reference to your point 1 (2)

I have filled the IGST paid export in column 3.1(a). The appropriate tax has been paid in that months GSTR 3B after showing the export and tax in 3.1(a).

As per your suggestion to correct this mistake , if I now show the export sale and tax paid of August 2017 in 3.1(b) in the GSTR3B of January , then

a. I will have to decrease sale and tax paid in 3.1(a) for that month.

b. how will system tally this data in January with Shipping Bills of August 2017.

All the table 6(A)s and GSTR1 are filed correctly

Request you to elaborate on how to make entries in next GSTR3B to get the refund

Thanks in advance

Regards

Harish Kohli

[Ramesh Tawari]

Thanx lot. It is very useful article. We have shown export sales with payment of IGST in table 3(1)(a) of GSTR-3B along with other domestic sales instead of table 3(1)(b) and declared the sales in table 6A of GSTR-1. It is cleared from article that appropriate adjustment can be done in GSTR-3B of the subsequent month. Please guide us that how it can be adjusted even though we have already uploaded such sales in GSTR-3B of that relevant period.

[Praveen Nair]

Please Note to the query raise:

Amendment in GSTR1 for exports is effected through Table 9A.

Table 9A is specifically meant for amendment of previous months only related to individual transactions wrongly filled in 6A of that respective month. If there are no change in value the return filed for previous month, GSTR 3B, is valid. You should not add the sales value in the current return, GSTR 3B, since the sales value has already been considered in the previous GSTR 3B return of respective month.

So to say: - Unless and until there is a need to revise/reset (which is not recommended), if wrongly filed in terms of value, GSTR 3B filed in earlier month will not be effected though the individual transaction if amended in the current month under GSTR1 9A Table.

Revision / Reset has different process online, which should be read before initiating any steps further.

Trust the clarification helps!

[Pawan Jaiswal]

Sir I have declared Nil tax liability in July 2018 in GSTR 3B, but in GSTR -1 i have mentioned the details correctly, now can i pay the short amount paid in June 2018 (FY 2018-19 if yes then how will i show the same in June 2018 GSTR 3B.