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We all know that in the recent scenario, a large number of exporters are claiming to avail the refunds of IGST that they had paid on the exports they had conducted. These IGST refunds are related to the period of more than a year since the introduction of GST regime in India.

It has been clearly noticed by the GST authority that the exporters who have the GST registration had negligibly left too many errors while the GST return filing procedure. This has seriously hampered the process of sanctioning or availing of the IGST refund to them by the central government.

In this regard, the Central Board of Indirect taxes and Customs (CBIC) has recently introduced several provisions and alternative procedures through which various errors due to the anomalies or mismatch between the Shipping Bill and the data recorded while GST return filing procedure with respect to the FORM GSTR-1 can be rectified in the system.

Notably, the central government has taken steps numerous in this regard in the past few months. Recently, the Central Board of Indirect taxes and Customs (CBIC) on October 9, 2018, had formally declared the Central Goods and Services Tax (12th Amendment) Rules, 2018 vide its Notification 54/2018 under the heading ‘Central Tax’. This amendment was made with respect to refund claims of the IGST paid exporters who have GST registration, on specified kinds of supplies.

IGST Refund Rectification

In order to provide some relief to the exporters who have the unique Import Export Code, the  CBIC has now extended the rectification facility for the Shipping Bills that have been filed by them up to 15 November 2018.

#1. Why did the government extend rectification facility for Shipping Bills?

The main reason for the government to extend rectification facility for Shipping Bills is that it has traced certain cases of Differential IGST Refunds. This is a scenario where the refund scroll had been made for a much lower amount of IGST than what has actually been incurred against the exported goods in several mismatch cases.

#2. What solution has been given to rectify the IGST amounts?

As per the new provision, the Exporters who have Import Export Code can now file a Revised Refund Request (RRR) Form for the reporting the differential amount of IGST under the alternate mechanism. However, this is a One Time facility only for the revision of IGST refund claims by the exporter having the GST registration and resolving mismatches in his GST invoice between the Shipping Bill (SB) and data entered in the FORM GSTR-1.

This will further simplify the refund process under GST.

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May 2024