IGST Export Refunds – (i) extension in SB005 alternate mechanism and (ii) revised processing in certain cases including disbursal of Compensation Cess

Circular No.ES/135/2019-20                                                             September 9, 2019

To: Members of the Council

Sub:   IGST Export Refunds – (i) extension in SB005 alternate mechanism and                           
                                                  (ii) revised processing in certain cases including
                                                       disbursal of Compensation Cess

Dear Member,

This has reference to Council’s Circular No. ES/117/2019-20 dated 30th August, 2019 informing about CBIC Circular No. 25/2019 – Customs dated 27th August, 2019 on the mechanism to verify the IGST payments for goods exported out of India in certain cases. In this regard, Mumbai Customs has issued Public Notice No. 77/2019 dated 30th August, 2019.

As you are aware, Board’s had earlier issue Circular 12/2018-Customs dated 29.05.2018 providing an interim solution to exporters for the first 9 months after introduction of GST i.e. till 31.03.2018. Though many exporters have benefited from the procedure prescribed in the said circular, but some exporters have still committed the same error while filing GSTR 3B on account of which their records are yet to be transmitted to Customs System. CBIC has now received the representations to extend the interim solution. Through the above Circular CBIC had also provided an interim solution in cases where the records could not be transmitted from GSTN to Customs system due to payments mismatch between GSTR-1 and GSTR-3B. The solution covered the period from July 2017 to March 2018. It appears that the payments mismatch has happened even subsequent to the period covered in the said circular.

In order to overcome the problems faced by the exporters, CBIC has examined the matter and in consultation with the GST Law Committee, has decided that the solution provided in the Circular 12/2018-Customs would be applicable mutatis mutandis for Shipping Bills filed during the period from April, 2018 to March, 2019 also.

In respect of guidelines provided in Para 3A (Cases where there is no short payment) and 3B (Cases where there is short payment) of the said circular, the comparison between the cumulative IGST payments in GSTR-1 and GSTR 3B would now be for the period from April, 2018 to March, 2019 and the corresponding CA certificate evidencing that there is no discrepancy between the IGST amount refunded on exports under this circular and the actual IGST amount paid on exports of goods for the period from April, 2018 to March, 2019 shall be furnished by 30th October 2019.

In case of any difficulty, members may kindly contact Shri Manoj Kedia, Commissioner of Customs (Exports).

Members may kindly make a note of the above.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR

 

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