Circular No.ES/ 87/ 2018-19 07th June, 2018
To: Members of the Council
This is to inform you that Central Board of Indirect Taxes and Customs has issued Circular No. 15/2018- Customs dated 06th June, 2018 on the above mentioned subject.
Your kind attention is invited to CBIC Circular Nos. 05/2018-Customs dated 23rd February, 2018 and 08/2018-Customs dated 23rd March, 2018 wherein an alternative mechanism with officer interface to resolve invoice mismatches was provided for the shipping bills filed till 28th February, 2018.
Although the cases having SB005 error have now ebbed due to continuous outreach done by the Board however, some exporters nevertheless, continue to make errors in filing invoice details in the shipping bill and the GST returns.
Now, Board has decided the following-
IGST refunds are also stuck on account of SB003 error on the customs side. This error occurs when there is a mismatch between GSTIN entity mentioned in the Shipping bill and the one filing GSTR-1/GSTR-3B.
Board has examined the issue and it has decided the following to provide a correction facility in cases where although GSTIN of both the entities are different but PAN is same.
This happens mostly in cases where an entity filing Shipping bill is a registered office and the entity which has paid the IGST is manufacturing unit/other office or vice versa. However, in all such cases, entity claiming refund (one which has filed the Shipping bill) will give an undertaking to the effect that its other office (one which has paid IGST) shall not claim any refund or any benefit of the amount of IGST so paid. The undertaking shall be signed by authorized persons of both the entities. This undertaking has to be submitted to the Customs officer at the port of export.
CBIC had even requested Directorate of Systems to develop a correction tool, on lines of one developed foe SBoo5, for sanction of refund in cases where PAN provided in Shipping Bill is same as PAN of GSTR 1. DG Systems have developed this utility which would facilitate processing of IGST refund claims stuck due to SB003 error in the manner similar to SB005 error.
Members may please make a note of the above.