CBIC issues clarification relating to sanction of pending IGST refund claims

CBIC issues clarification relating to sanction of pending IGST refund claims

May 31, 2018 Fiscal, Industries, states 0

Central Board of Indirect Taxes and Customs has issued Circular No. 12/2018-Customs dated 29th May, 2018 to provide clarifications relating to sanction of pending IGST refund claims where the records have not been transmitted from the GSTN to Customs EDI portal.

The Key highlights of the Circular are:

  1. Certain exporters have mis-declared IGST paid on export supplies as IGST paid on interstate domestic outward supplies while filing GSTR-3B. The exporters have also in certain cases short paid IGST in comparison to their liability declared in GSTR-1. As a result of these mismatches in the amount of IGST paid on export goods between GSTR-1 and GSTR-3B, the transmission of records from GSTN to Customs EDI system has not happened and consequently IGST refunds could not be processed.
  2. In view of the above, following procedures has being prescribed to overcome the problem of refund blockage:

A. Cases where there is no short payment of IGST:

  1. The Customs policy wing would prepare a list of exporters whose cumulative IGST amount paid against exports and interstate domestic outward supplies, for the period July,2017 to March, 2018 mentioned in GSTR-3B is greater than or equal to the cumulative IGST amount indicated in GSTR-1 for the same period. Customs policy wing will send this list to GSTN.
  2. GSTN would send an e-mail to these exporters regarding the transmission of records to Customs EDI system.
  3.  The exporters whose refunds are processed/ sanctioned would be required to submit a certificate from Chartered Accountant before31st October, 2018 to the Customs office at the port of export to the effect that there is no discrepancy between the IGST amount refunded on exports and the actual IGST amount paid on exports of goods for the period July, 2017 to March, 2018.
  4. A copy of the certificate shall also be submitted to the jurisdictional GST office (Central/ State).
  5. Non-submission of CA certificate shall affect the future IGST refunds of the exporter.
  6. The list of exporters whose refunds have been processed as above shall be sent to DG (Audit) / DG (GST) by the Board.

B. Cases where there is short payment of IGST:

  1. In cases where there is a short payment of IGST i.e. cumulative IGST amount paid against exports and interstate domestic outward supplies together, for the period of July, 2017 to March, 2018 mentioned in GSTR-3B is less than the cumulative IGST amount indicated in GSTR-1 for the same period, the Customs policy wing would send the list of such exporters to the GSTN and all the Chief Commissioner of Customs.
  2. GSTN would send an e-mails to each exporter referred above so as to inform that their records are held up due to short payment of IGST.
  3. The exporters would have to make the payment of IGST equal to the short payment in GSTR 3B of subsequent months so as to ensure that the total IGST refund being claimed in the Shipping Bill/GSTR-1(Table 6A) is paid. The proof of payment shall be submitted to Assistant/Deputy Commissioner of Customs in charge of port from where the exports were made.
  4. Where the aggregate IGST refund amount for the said period is upto Rs.10 lacs, the exporter shall submit proof of payment (self-certified copy of challans) of IGST payment to the concerned Customs office at the port of export. However, where the aggregate IGST refund amount for the said period is more than Rs. 10 lacs, the exporter shall submit proof of payment (self-certified copy of challans) of IGST to the concerned Customs office at the port of export along with a certificate from Chartered Account that the shortfall amount has been liquidated.
  5. The exporter would give an undertaking they would return the refund amount in case it is found to be not due to them at a later date.
  6. The Customs zones shall compile the list of exporters (GSTIN only), who have come forward to claim refund after making requisite payment of IGST towards short paid amount and complied with  other prescribed requirements.
  7. The compiled list may be forwarded to Customs policy wing, DG (Audit) and DG (GST). Customs policy wing shall forward the said list of GSTINs to GSTN. On receipt of the list of exporters from  Customs policy wing, GSTN shall transmit the records of those exporters to Customs EDI system.
  8. The exporters whose refunds are processed/ sanctioned as above would be required to submit another certificate from Chartered Accountant before 31st October, 2018 to the same Customs office at the port of export to the effect that there is no discrepancy between the IGST amount refunded on exports and the actual IGST amount paid on exports of goods for the period July’ 2017 to March’ 2018. A copy of the certificate shall also be submitted to the jurisdictional GST office (Central/ State).
  9. Non-submission of CA certificate shall affect the future IGST refunds of the exporter.

3. The exporters would be subjected to a post refund audit. DG (Audit) shall include the above referred GSTINs for conducting Audit under the GST law. In case, departmental Audit detects excess refunds to the exporters under this procedure, the details of such detections may be communicated to the concerned GST formations for appropriate action.

For further details please refer the attached Circular.
Source: Central Board of Indirect Taxes and Customs

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