Exporter’s refund under GST stuck with government !!!!!! Here is the reason and the solutions for the same!!!!!
The Government of India is seized of the issue of Exporters complaining about delay in grant of refunds pertaining to Integrated Goods and Services Tax (IGST) paid on goods exported out of India and similarly Input Tax credit (ITC) on exports.
It is clarified that the quantum of IGST refund claims as filed through Shipping Bills during the period July to October 2017, is approximately Rs. 6,500 crore and the quantum of refund of unutilized credit on inputs or input services, as per the RFD 01A applications filed on GSTN portal, is to the tune of Rs. 30 crore.
Errors by exporters while filing their returns are the sole reason for delay in grant of refunds or rejection thereof;
The prerequisites for sanction of refund of IGST paid are as follows:
- Filing of GSTR 3 B,
- Filing correct data in Table 6A of GSTR 1 on the GSTN portal and,
- Shipping Bill(s) on Customs EDI System
It is essential that exporters should ensure that there is no discrepancy in the information furnished in Table 6A of GSTR 1 and the Shipping Bill.
It has been observed that certain common errors are being committed by exporters while filing their returns, such as
- Incorrect Shipping Bill number in GSTR1,
- Mis-match of invoice number and IGST amount paid,
- Wrong bank account etc.
How an exporter will know the reason of rejection of claim of refund,
- If an exporter is registered on the ICEGATE portal, information has been made available to Exporters on the portal,
- The exporter may also contact jurisdictional Customs authorities to check the errors they have committed in furnishing information in GST returns and Shipping Bill, and rectify them at the earliest.
As the Customs System is designed to automatically grant refunds without involvement of any officer by matching information that is furnished on GSTN portal and Customs system, the onus is on the exporters to fill in all the details accurately. Exporters may, therefore, take due precaution to ensure that no errors creep in while filing Table 6A of GSTR 1.
Is it possible to correct mistakes made in GSTR-1 of July’2017?
The facility for filing GSTR 1 for August 2017 would also be ready by 4th December 2017. In case of wrong entries made in July, Table 9 of GSTR 1 of August month would allow amendments to GSTR 1 of July 2017.
- Exporters shall file an application in FORM GST RFD- 01A on the GST Common Portal, where the amount claimed as refund shall get debited from the Electronic Credit Ledger of the exporter to the extent of the claim.
- A proof of debit (ARN- Acknowledgement Receipt Number) shall be generated on the GSTN portal,
- Take a print out of FORM GST RFD-01A and mention above generated ARN over the same.
- Manually submit FORM GST RFD-01A along with all the necessary documentary evidences to the jurisdictional officer.
(a) File Table 6A and GSTR 3B, if not already done, for processing of IGST refund,
(b) File RFD 01A on GSTN portal for refund of the unutilized input tax credit on inputs or input services used in making exports and,
(c) File GSTR 1 for August 2017 for amending details provided in July GSTR1 wherever required.