CBEC-20 /16/34 /2019-GST/1768
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
GST Policy Wing


Room No. 159-A, North Block

Dated: 16, November, 2020


All Principal Chief Commissioners/Chief Commissioners/Chief Central Tax


Subject: Sanction of refund on the lower value in terms of Circular No. 37/11/2018-GST dated 15.03.2018 – reg.

Kind attention is drawn to paragraph 9.1 of the Circular No. 37/11 /2018-GST dated 15th March, 2018 (copy enclosed), wherein it has been clarified that the value of the goods declared in the GST invoice and the value in the corresponding shipping bill / bill of export should be examined and the lower of the two values should be sanctioned as refund. ‘Moreover, it has been specifically clarified in the Circular dated 15th March, 2018 that the clarification given in the, circular applies to exports made on or after 1st July 2017.

2. The office of C&AG has made certain observations with respect to the above in its DAP No. 57/GST/2019-20, wherein it has observed that there have been cases in field formations where sanctioned refund for zero-rated supplies (made without payment of tax) has beep made considering invoice bill value of its supplies instead of the value (FOB) of their corresponding shipping bills even when shipping bill (FOB) value of the supplies was lower than the corresponding invoice value. Thus, this has resulted in excess payment of refund.

3. In this regard, it has been decided that the offices under your jurisdiction shell examine all such cases and take appropriate action in accordance with law in a time-bound manner,

4. This issues with approval of 1.ember GST.

Yours sincerely,

End: As above

(Yogendra Garg)
Principal Commissioner, GST

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