ALL YOU WANT TO KNOW ABOUT REFUND ERRORS

When the exporters have declared properly paid IGST on export supplies in their Form GSTR – 3B and the same matches with the liability declared in Form GSTR-1, then the data will be transmitted to the Customs system wherein the GST return data is matched with the shipping bill data. If the matching is successful, ICES processes the claim for refund and the relevant amount of IGST paid with respect to each shipping bill or bill of export is electronically credited to the exporter’s bank account as registered with the Customs authorities. But, wherever the matching fails on account of some error, the refund do not get sanctioned. The matching between the two data sources is done at invoice level and any mis-match of the laid down parameters results in one or more of the following errors/responses:

Code Indicates
SB000 Successfully validated
SB001 Invalid SB details
SB002 EGM not filed
SB003 GSTIN mismatch
SB004 Record already received and validated
SB005 Invalid Invoice Number
SB006 Gateway EGM not available

As mentioned above, process of granting of refund is very easy and automated, but one has to be very careful while understanding the error occurred and its meaning and what action to be taken for correcting the same.

Error Code Indicates Responses and Actions
SB001 This response code comes when all the decided parameters like GSTIN, SB number, Invoice Number etc. match between GSTN and Customs databases. This code implies that the SB is ripe for inclusion in the IGST refund scroll. a) The exports might have been made under bond or LUT, hence not liable for refund.

b) If a shipping bill covers multiple invoices, few of the invoices might have been successfully validated with code SB000 whereas other invoices might be stuck with any of the other errors.

c) Higher rate of Drawback has been claimed for that SB, thus making the SB ineligible for IGST refund.

d) Where the IGST claim amount is less than Rs. 1000/

SB001 This may occur due to a mismatch between the SB No. furnished in GSTR-1/6A and the SB No. with customs. The possible reason for such mismatch could be a clerical error made by the exporter at the time of filling of GSTR-1/6A  It can be rectified by making amendments in GSTR-1 by using Form 9A. Form 9A has been made available by GSTN w.e.f 15.12.2017 in exporter’s login at the GST Common Portal.
SB002 EGM not filled Exporter may approach the Shipping Lines file the EGM immediately. If EGM is already filed by shipping Line correctly, “Revalidate EGM” option may be used by EGM Officer.
SB003 GSTIN mismatch CBIC has clarified that Exporter may approach Customs Officers at the Ports/ICDs from where actual export took place and get the error corrected

If PAN is given instead of GSTIN, Undertaking is required to be submitted.

SB004 RECORD ALREADY RECEIVED This error code occurs due to duplicate/repeat transmission of SB-Invoice record from GSTN.

The previous transmission would have already been validated for IGST refund by ICES.

SB005 Inoive Mismatch This is the most common error faced by the exporters, which occurs due to mismatch of invoice number as declared in the Invoice Table in the SB and that declared in the GSTR 1 for the same supply. This can happen due to:

a) Typographical mistake while entering data in GSTR 1 or the SB.

b) The exporter uses two sets of invoices, one invoice for GST and another invoice for exports resulting in mismatch of invoice numbers

If SB005 is due to a data entry mistake in GSTR 1, it can be amended now in Form 9A.

But any mistake in the SB cannot be amended once EGM is filed.

For shipping bills filed upto 31.12.2019, a error in shipping bill can be rectified by providing concordance table.

SB006 Gateway EGM not available – In case of ICDs, if the Gateway EGM is not filed electronically or is stuck in some error, response code SB006 shall appear. It is well known practice that cargos originating from ICD’S, Local EGM has been filled Manually whereas Gateway EGM  has been filed online, due to which system is not able to reconcile the data between local and gateway EGM and hence IGST refund gets blocked.

Therefore CBIC vide Circular No. 42/2017- Customs. dated 07.11.2017 instructed that all the custodians /carriers/shipping lines operating at ICDs/Gateway ports should file EGM online. It is re-iterated that as the first step, the concerned stakeholders at the originating ICDs should file the local EGMs online

For any TAXATION Query Conatct: guptaparag257@gmail.com or 6284454180

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