Standard Operating Procedure (SOP) to be followed by Exporters claiming IGST refund on export of goods - reg.,

Circular No. ES/ 218/2019-20 January 27, 2020

(URGENT AND IMPORTANT)

To: Members of the Council

Sub: Standard Operating Procedure (SOP) to be followed by Exporters claiming IGST refund on export of goods - reg.,

Dear Member,

CBIC has issued Circular No.131/1/2020-GST dated 23^rd January, 2020 prescribing Standard Operating Procedures (SOP) to be followed by exporters. It has been observed in several cases that exporters have claimed Input Tax Credit (ITC) refunds on bogus invoices and IGST on exports using such ITC.

To tone down the risk, Board has now taken certain measures:

Apply stringent risk parameters-based checks driven by rigorous data analytics and Artificial Intelligence tools based on certain exporters who are taken up for further verification.
For verification, some exporters have been selected who claimed the refund.
The refund scrolls in such cases are kept in abeyance till the verification.
Further, the export consignments/shipments of concerned exporters are subjected to 100% examination at the customs port.

Action to be taken by exporters: Inform to his jurisdictional CGST authorities in the format as given in “Annexure A”.

Action to be taken by Jurisdictional CGST Authorities:

Complete the verification within 14 working days of furnishing of information.
If the verification is not completed within this period, the jurisdiction officer will bring it the notice of a nodal cell to be constituted in the jurisdictional Pr. Chief Commissioner/Chief Commissioner Office (Hereinafter called the Proper Officer).

After a period of 14 working days from the date of submission of details in the prescribed format, the exporter may also escalate the matter to the proper officer by sending an email to the Chief Commissioner concerned (email ID: IGSTrefund-cbic@gov.in).

The proper officer would take appropriate action to get the verification completed within the next 7 working days.

Please Note the following:

(1) In case, any refund remains pending for more than one month, the exporter may register his grievance at cbic.gov.in/issue by giving all relevant details like GSTIN, IEC, Shipping Bill No., Port of Export & CGST formation where the details in prescribed format had been submitted, etc.. All such grievances shall be examined by a Committee headed by Member GST, CBIC for resolution of the issue.

Annexure A have 3 parts:

(a) Ist part: GST Related Data (like Name of entities from which the director associated with, details of GST liability, Detail of ITC, Refund Claimed, Summary of E-way Bill generated)

(b) IInd Part: Financial Data (like bank account details including the bank details of directors, Bank Statement of past 6 months, Top 5 creditor & debtors, etc.)

(c) IIIrd Part: Additional Data (like Copy of PAN, IEC, Telephone Bill, Electricity Bill, etc.)

Members are requested to kindly make a note of the above.

Thanking you,

Yours faithfully,

S. BALARAJU
EXECUTIVE DIRECTOR