Refund of IGST paid on export of goods under Rule 96 of CGST Rules 2017 - Customs - PUBLIC NOTICE NO. 123/2017

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT-II) NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI 400001. F. No. S/26-Misc-54/2017 DBK Date: 27.10.2017 PUBLIC NOTICE NO. 123/2017 Sub: Refund of IGST paid on export of goods under Rule 96 of CGST Rules 2017. Attention of the trade is invited to board s instruction no. 15/2017-Customs issued vide F. No. 450/119/2017-Cus IV dated 9th October 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. 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 are 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-1 4. The details of zero rated supplies declared in Table 6A of return in Form GSTR-1 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 are 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 are 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 are 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 are 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 are 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. 7. Difficulties faced, if any, may be brought to the notice of the undersigned. Sd/- (Ramesh Chander) Commissioner of Customs (Export) New Customs House, Mumbai-I