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Introduction: The recent circular from the Office of the Commissioner of Customs, Chennai, sheds light on the IGST refund process concerning the export of specific tobacco products. With amendments in regulations and notifications, exporters face new challenges and opportunities. This article delves into the nuances of IGST refunds, recent changes, and solutions to encountered issues.

Detailed Analysis

1. Regulatory Framework Overview: Circular No. 24/2023-Customs and Notification No. 01/2023-Integrated Tax provide the regulatory framework for IGST refunds on exported goods. Understanding the provisions outlined in these documents is crucial for exporters to navigate the refund process efficiently.

2. Restrictions on Export of Certain Goods: The circular highlights restrictions on the export of goods mentioned in the table annexed to the notification. These goods require an Letter of Undertaking (LUT) for export, imposing limitations on IGST refund routes. This implies that exporters must adhere to specific guidelines when exporting certain goods.

3. Addressing Exporter Grievances: The Office of the Commissioner of Customs acknowledges grievances from exporters regarding the inability to file shipping bills with IGST claims for certain tobacco products. This issue arises due to restrictions based on brand names, creating challenges for exporters seeking refunds.

4. System Exception for IGST Refund: To address these challenges, an exception has been introduced in the system. Exporters can now declare that their goods do not fall within the prohibited category, allowing the processing of shipping bills for IGST refund payments. However, it’s essential to note that the system does not validate these declarations, placing responsibility on exporters for accuracy.

5. Assistance for Traders: Traders encountering difficulties or issues in the IGST refund process can seek assistance by contacting the designated email address provided by the authorities. This avenue ensures that exporters receive the necessary support and guidance to navigate the complexities of the refund system effectively.

IGST refund on export of certain tobacco products

Conclusion: In conclusion, the recent developments in the IGST refund process for exported tobacco products highlight the evolving regulatory landscape and the challenges faced by exporters. By understanding the provisions outlined in the circulars and notifications, exporters can streamline their operations and ensure compliance with regulations. The introduction of system exceptions offers a solution to address grievances and facilitate smoother refund processes. However, it’s imperative for traders to remain vigilant and seek assistance when encountering difficulties to ensure seamless export operations.

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CUS/RFD/IGST/OTH/24/2024-IGST-Ref-O/o Commr-Cus-Exp-Chennai

GOVERNMENT OF INDIA
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE OF THE COMMISSIONER OF CUSTOMS, CHENNAI-IV
60,CUSTOM HOUSE, RAJAJI SALAI, CHENNAI-600 001

File No. CUS/RFD/IGST/OTH/2024-IGST

Public Notice No. 10/2024 – Custom | Dated: 13.03.2024

Subject – IGST refund on export of certain tobacco products -re%.

Kind attention is invited to Circular No. 24 /2023-Customs dated 30th September 2023, regarding sub-section (4) of Section 16 of IGST act 2017 and Notification No. 01/2023-Integrated Tax dated 31st August 2023 vide which it was notified that all goods or services (except the goods specified in column (3) of the TABLE in Notification) may be exported on payment of integrated tax on which the supplier of such goods or services may claim the refund of tax so paid.

2. In effect, Goods mentioned in the Table annexed to the above notification may be exported only under LUT. To implement above restrictions imposed on export of goods on payment of IGST, this office had developed a backend functionality to restrict IGST refund route for the CTHs mentioned in the above said table for the shipping bills filed w.e.f. 01.10.2023.

3. Now, Board has received grievances from the exporters that certain users are not able to file shipping bills with IGST claim for certain tobacco products (where the GST regulations allow filling of shipping bills with IGST refund claim for goods that are not carrying a brand name, while restricting filing of shipping bills for goods carrying a brand name).

4. In order to address the above issue, an exception has been built in system to allow the user to declare that his goods do not fall within the prohibited category (where IGST refund from customs is not permissible), and the system will process these shipping bills for IGST refund payment. The system will not validate the declaration. The user has to declare following declarations in single window table:

INFO_CD: ‘CHR’

INFO_QFR: ‘GSTALLOWED’ for first item of Shipping Bill.

5. Traders facing any difficulties or issues may email to icegatehelpdeskBicegate.gov.in for further assistance.

Commissioner of Customs, Chennai-IV

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