General Advisory on Refund of IGST paid on Exports of Goods with Payment of Tax

[Praveen Nair]

This is with reference to the processing of invoices of GSTR 1 pertaining to the export of goods with payment of IGST by the GST System, and transmission of validated invoices to ICEGATE for refund of IGST paid on exports of goods. 

As per Rule 96, the refund of IGST paid on export of goods is processed and disbursed by Customs. The GST System validates invoice data filed under Table 6A of GSTR 1 based on certain rules, which are specified in Para-E of this advisory, and transmits to ICEGATE for further validation and disbursement of refund.

1. It has been observed that many records are failing validation at GST System, and hence data hasn't got transmitted to ICEGATE. The following are top reasons for validation failures:
   1. Export Invoices filed in Table 6A of GSTR 1 did not have information of SB Number, SB Date or Port Code,
   2. Total IGST, payable through export invoices specified under Table 6A of GSTR 1, is not specified correctly under Table 3.1(b) of GSTR 3B and incorrectly mentioned under Table 3.1(a) or Table 3.1(c) of GSTR 3B,
   3. IGST submitted under Table 3.1(b) of GSTR 3B is less than total IGST, payable through export invoices specified under Table 6A of GSTR 1 of that tax period.
   4. Taxpayer mentioned LUT under Shipping Bills, whereas declare such export as IGST paid, under GST System.

2. Further, it has also been observed that some taxpayers who had filed GSTR 1E (Table 6A) with deficiencies, due to which their refund of IGST paid on export didn't process, subsequently, filed GSTR 1 with corrected data of Table 6A. However, such data was not allowed to be integrated again in Table 6A because the taxpayer had already filed his GSTR 1E (Table 6A). In such case, the taxpayer has to amend his Table 6A data through Table 9A of subsequent GSTR 1.

3. Some invoices, which were successfully validated by GST System and transmitted to ICEGATE, failed validations at ICEGATE. The following are the main reasons:
   1. Mismatch in invoice number and date of the invoices filed in GST System and invoices submitted in SB at customs.
   2. Mismatch of port code given in invoice filed in GST System and the invoices given in SB at customs
   3. Mismatch of other details of invoices filed at GST System and invoices filed with SB like value, IGST amount etc.

4. Due to such validation failures, the refund of IGST paid on exports is impacted and not processed. Therefore, exporters/taxpayers are hereby requested to follow the following advisory so that they may file their returns (GSTR 1/ GSTR3B) correctly, ensuring that their refund of IGST paid on export of goods are processed successfully.

Advisory to the Exporters for Refund of IGST Paid on Export of Goods

To ensure that the GST System transmits invoice data, for refund of IGST paid on exports of good, the exporters are advised to provide Complete and Correct Data as per the points given below:

1. File GSTR 1 for the corresponding tax period, and ensure that:
   1. Invoice data for export of goods is provided in Table 6A of FORM GSTR 1 for the relevant tax period
   2. Invoice numbers provided in Table-6A of FORM GSTR 1 are same as that of the invoice details given in Shipping Bill.

(The invoice with different invoice number/date than given in shipping bill will be rejected by ICEGATE)

3. Select WPAY (with payment of tax) from drop down given in Table 6A as "invoice type".

(Invoices selected as WOPAY (without payment of tax) are not eligible for refund from ICEGATE)

4. Shipping bill number, shipping bill date and port code (originating port) etc. are to be specified mandatorily and correctly, in case of export of goods.

(Invoices, which don't have these details, shall not be sent to ICEGATE for further processing, because such invoices are treated and export of services.)

5. Port code is alphanumeric six character code as prescribed by ICEGATE. Port codes are available at ICEGATE under https://www.icegate.gov.in/SMTPList.html

(Invoice, which have incorrect port code, are likely to get rejected by ICEGATE)

2. While filing GSTR 3B Return for the said tax period, please ensure that:
   1. IGST amount to be paid on export of goods/services outside India or to SEZ etc. are filed under Table 3.1 (b) and not under Table 3.1(a) or 3.1(c) of GSTR 3B,
   2. IGST amount filed in Table 3.1(b) of GSTR 3B is either equal to, or greater than the total IGST shown to have been paid under Table 6A, and Table 6B of GSTR 1

(NONE of the export invoices shall be processed for transmission to ICEGATE if correct IGST amount is not mentioned and paid through Table 3.1(b) of GSTR 3B)

Advisory on upcoming facility to the Exporters for modification of GSTR 1 and adjustment of GSTR-3B data, where taxpayer has committed some mistakes:

1. The taxpayers may modified their incorrect invoice data of Table 6A through Table 9A of subsequent tax period.
   1. Missing Shipping Bill details or port code detail can be completed
   2. Incorrect invoice numbers or other details can be corrected
   3. While amending invoice data, the taxpayers are required to mention their original invoice mandatorily.
2. As per circular number 26/26/2017, dated 29-Dec-2017, issued by CBEC, anomalies in filing of GSTR-3B as specified under Para A of this document may be adjusted while filing GSTR 3B of subsequent tax period.
   1. If IGST paid on exports has been declared in Table 3.1(a) or Table 3.1(c) instead of Table 3.1(b), and IGST shown to have been paid under Table 6A of GSTR 1 of that tax period, appropriate adjustment may be done in subsequent month
   2. If IGST paid on exports has been declared as ZERO in Table 3.1(b), whereas, IGST shown to have been paid under Table 6A of GSTR 1 for that tax period, the correct amount can be declared and offset while filing GSTR 3B of subsequent tax period.
   3. If IGST paid on exports declared in Table 3.1(b) is lesser that the total IGST shown to have been paid under Table 6A and Table 6B of GSTR 1, differential amount of IGST can be paid through GSTR 3B of subsequent tax period.

In all these cases, GST System shall aggregate the amount of IGST shown to have been paid under Table 6A/6B and 9A of GSTR 1 and the aggregate IGST amount actually paid through Table 3.1(b) and validation will be done on the basis of cumulative IGST amount of multiple tax period.