Exporters advised to file Table 6A and GSTR 3B for processing refund of IGST and Input Tax Credit (ITC)

Circular No.ES/245/2017-18                                                          November 30, 2017

To: Members of the Council

Sub: Exporters advised to file Table 6A and GSTR 3B for processing refund of IGST and Input Tax Credit (ITC)

Dear Member,

As you are aware, the Central Board of Excise and Customs (CBEC) had started refunds for exporters of goods who have paid IGST and have claimed refund based on shipping bill by filling up Table 6A. Earlier this month, it allowed businesses making zero rated supplies or those who have paid IGST on exports or those want to claim input credit to fill Form RFD-01A.

It is clarified by the Ministry of Finance through the Press Release dated 29^th November, 2017 that the quantum of IGST (Integrated GST) 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.

With regards to IGST paid on goods exported out of India, majority of refund claims for exports made in July 2017, whenever due have been sanctioned.  Refund claims of IGST paid for exports made in August, September and October 2017 is being sanctioned seamlessly wherever returns have been accurately filed.

For claiming Refund of IGST paid on Exports and Refund of the unutilized Input Tax Credit on inputs or input services used in making exports members have to follow the procedures as given below :

(A)       Refund of IGST paid on Exports

• Exporters should file GSTR-3B and Table 6A of GSTR-1 on the GSTN portal and shipping bills on Customs EDI System.

• Exporters should ensure that there is no discrepancy in the information furnished in Table 6A of GSTR 1 and the Shipping Bill.

• Instance of errors are noticed in shipping bill number in GSTR-1, mismatch of invoice number and IGST amount paid, wrong bank account, etc. which are  delaying the refund process.

• These errors are the sole reason for delay in grant of refunds, or rejection thereof. While information has been made available to Exporters on the ICEGATE portal if they are registered, they 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

• It said that since customs system 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 of August 2017 and onwards.

• The facility for filing GSTR 1 for August 2017 would also be ready by 04^th December, 2017.

• In case, exporters have committed errors in filling up July claim forms, they can make changes by filling up Table-9 of GSTR-1 of August returns.

(B)       Refund of the unutilized Input Tax Credit on inputs or input services used in making exports

• For claiming input tax credit (ITC), the exporters shall file an application in FORM GST RFD- 01A on the 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.

• Thereafter, a proof of debit (ARN- Acknowledgement Receipt Number) shall be generated on the GSTN portal, which is to be mentioned on the print-out of the FORM GST RFD-01A and to be submitted manually to the jurisdictional officer.

• Exporters will have to ensure that all the necessary documents are submitted along with the Form RFD-01A for timely sanction of refund.

Exporters are advised to immediately file the following –

a) Table 6A and GSTR-3B, for processing of IGST refund

b) RFD-01A on GSTN portal for refund of the unutilized ITC on inputs or input services used in making exports

c) GSTR-1 for August 2017 for amending details provided in July GSTR-1.

The Council requests our members to follow the above instructions and guidelines issued by the Ministry and do the needful immediately to get your IGST refunds in timely and effective manner.

Thanking You,

S. BALARAJU
EXECUTIVE DIRECTOR