Refunds of IGST paid on export of goods under Rule 96 of CGST Rules, 2017 - Customs - PUBLIC NOTICE NO. 38/2017

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT) AIR CARGO COMPLEX, SAHAR, ANDHERI (EAST). MUMBAI-400099. F. No. S/3-Misc- 254/2017-18 DBK(EDI)/ACC Date: 08/11/2017 PUBLIC NOTICE NO. 38/2017 Sub: Refunds of IGST paid on export of goods under Rule 96 of CGST Rules, 2017 - regarding Kind attention of the Exporters, Custom House Brokers, all Airlines/Carriers and all Members of Trade is invited to Circular No. 42/2017 - Customs dated 07.11.2017 issued by OSD (cus-lv), Central Board of Excise and Customs, New Delhi regarding Refunds of IGST paid on export of goods under Rule 96 of CGST Rules, 2017. 2. The analysis of the common errors that are hindering the disbursal of IGST Refund has already been discussed in Facility Notice No 25/2017 dated 18.10.2017 issued by this office. But still in many cases, IGST refund for the month of July 2017 could not be disbursed due to errors in EGM/GSTR1 Return/Shipping Bills. 3. Circular 42/2017 - Cus deals with further analysis of the common errors that are hindering the disbursal of IGST Refund and the decisions taken to address such errors so that disbursal of IGST Refunds is smooth for the month of July and August, 2017. 4. IGST refunds for the exports of goods in the month of July. 2017: i) Incorrect SB number in GSTR 1 There are cases where the shipping bill number quoted in GSTR 1 either does not exist or it pertains to another exporter. In respect of these claims, the only way out is to amend the GSTR 1(Amendments to taxable outward supply details furnished in returns for earlier tax periods) and enter the correct shipping bill number. In these cases, the amendments for information furnished in GSTR I for July 2017 need to be filed in Table 9A of GSTR 1 for August ii) Invoice number and IGST paid amount mis-match Analysis of data revealed that exporters have quoted different invoice numbers for GST and Customs purposes. Also, IGST paid amount indicated in GSTR 1 is not tallying with IGST paid amount indicated in shipping bill. As the same transaction is being reported under GST Act and under Customs Act, the exporters may take care to ensure the details of invoice, such as Invoice number, IGST paid etc, under GSTR 1 and shipping bill match with each other. iii) EGM Error Due to either mismatch in information furnished in Export General Manifest (EGM) vis- -vis shipping bill or non-filing of EGM in certain cases, the compliance of 'exported out of India' requirement in Rule 96 (2) of Central Goods and Services Tax (CGST) Rules, 2017 remained unfulfilled. It is also noticed that Gateway EGM in case of many ICD's Shipping Bills have been manually filed, due to which the system is unable to match the EGM details. Hence, it is informed that all the shipping lines operating in ICDs/Gateway ports file EGM online. All ICDs and Gateway ports have instructed the shipping lines to file supplementary EGM, online for the consignments exported in July 2017 by 31 'October. For subsequent months also, the shipping lines/Airlines must invariably file the Gateway EGM online. In cases where supplementary EGM have been filed successfully, refunds are already being given. iv) Wrong Bank Account given to Customs In some cases, bank account details available with Customs have been invalidated by P FMS. Reports on such accounts / IECs have been provided to the Commissionerates by the Directorate of Systems in ICES and by email. Exporters are hereby advised that if the account has not been validated by PFMS, they must get their details corrected in the ICES EDI system. Exporters are also advised not to change their bank account details frequently so as to avoid delay in refund payment. 5. IGST Refunds for the export of goods in the month of August. 2017: GSTN has provided the utility to declare Table 6A in GSTR1 for exporters to fill in information related to Zero Rated Supplies. Once exporters file Table 6A, it would be possible to sanction refunds for the exports made in August 2017. All exporters need to fill Table 6A online to claim refunds against exports made in August 2017. Exporters have already been provided an option to view their Shipping Bill data online on ICEGATE website, so that they can ensure filing of their Table 6A without any error. All necessary steps may be taken to make exporters aware that the common errors that hindered disbursal of IGST refunds in July are not repeated in subsequent months. 6. Export of goods by Merchant Exporters The GST council in its 22nd meeting has also approved the GST rate of 0.1% for supplies to merchant exporters and Notification No. 41/2017- Integrated Tax (Rate), Notification No. 40/2017- CGST (Rate) and Notification No. 40/2017 - UT GST (Rate), all dated 23rd October, 2017 have been issued to that effect. The said benefit is subject to the conditions mentioned in aforementioned notifications. The merchant exporters are advised to take following precautions to avail the benefit of the scheme: i) The Name and OSTIN of the Registered Supplier should be provided against each item in Third Party details column of Shipping Bill. The GST Invoice details of the registered supplier of each item should be declared in the ARE Certificate and Date columns in the Shipping Bill format. Necessary changes have already been done in ICES application. The third party details would be printed in the shipping bill copies for fulfilment of the notification conditions. ii) Further in case of an export consignment containing multiple supplies by registered suppliers, the' registered recipient (merchant exporters) need to provide details of all registered suppliers and corresponding invoices against each item in the Shipping bills. iii) For the purpose of above mentioned notifications concerning supply to registered recipient at concessional GST, registered principal place of business or registered additional place of business shall be deemed to be a registered warehouse iv) Registered recipients (Merchant exporters) may, if required, exclude commercially sensitive information while providing copies of Shipping Bills to registered suppliers. 7. Difficulties, if any, faced in the implementation of this Public Notice may be brought to the notice of the Assistant Commissioner of Customs (Drawback IGST), Air Cargo Complex, Sahar, Mumbai. 8. This issues with the approval of the Commissioner of Customs (Export), ACC, Mumbai Zone-III. (Dr. Raju Sakthivel) Addl. Commissioner of Customs (Export) ACC, Sahar Mumbai