Amendment in shipping Bill, Goods and Services Tax - GST

[Navid Mukadam]

Dear Experts

we have changed our invoicing process of exports of goods under LUT to exports with payment of IGST. Upon revieving certain invoices, it came to our knowledge that though tax invoices were raised with IGST, but export were done under LUT. As a result we are in the process of filing amendment in shipping bill

so kindly guide in the process of amendment in shipping bill and what necessary documents to be provided along with Shipping bill. our clearing agent is requesting for filed monthly GST return with respect to tax invoice raised under IGST which will not be feasible until next month as due date to file Jan month GST returns is 11 Feb-2025

so kindly provide your expertise in the process of amendment in shipping bill

Posts / Replies

[YAGAY andSUN]

Under Section 149 of the Customs Act, 1962, the procedure for amending a Shipping Bill can be carried out, and this is typically done if there are errors or inaccuracies in the documents related to the export transaction. However, there are specific guidelines regarding the amendment of Shipping Bills, particularly in cases involving the IGST (Integrated Goods and Services Tax) Invoice and the reference to the LUT (Letter of Undertaking).

Key Points Regarding Amendment in Shipping Bill under Section 149:

1. Section 149 of the Customs Act allows for the amendment of the Shipping Bill:

   • It provides a mechanism for exporters to correct any errors or omissions in the shipping bill or other documents after submission.
   • The amendment should be filed before the clearance of goods for export.
   • The Customs authorities may allow changes if the application is supported by sufficient documentation and justifiable reasons for the amendment.

2. IGST and LUT Issue:

   • The IGST Invoice is issued in the case of exports under the GST regime, and this invoice is usually linked with the Shipping Bill for the purpose of refund claims under IGST.
   • The reference to the LUT is related to exports made under the LUT in cases where the exporter is not required to pay IGST at the time of export (i.e., exports are made under a LUT, and no tax is paid at the point of export).

   In case there is an error in the Shipping Bill, such as the incorrect reference to the LUT or the inclusion of IGST invoice when LUT was applicable, the following steps can be taken for amendment:

Procedure for Amendment:

1. Application for Amendment:

   • The exporter or his authorized representative must submit an application to the relevant Customs authority requesting an amendment of the Shipping Bill.
   • The request must be supported by a written justification for the amendment, along with the necessary documents.

2. Documents Required:

   • Original Shipping Bill.
   • A copy of the IGST invoice, if applicable.
   • Letter from the exporter confirming the LUT reference issue and detailing the discrepancy.
   • A copy of the LUT if it was mentioned in error.
   • Any other supporting documentation such as export invoices, bills of lading, etc.

3. Process Flow:

   • The Customs officer examines the application and the supporting documents.
   • Upon satisfaction, the Customs authorities may accept the amendment and make the necessary corrections in the system (e.g., correction of LUT details or IGST details).
   • After correction, the updated Shipping Bill can be used for export clearance.

4. In Case of Refund Issues:

   • If the issue affects the IGST refund process, the exporter may need to ensure that the revised Shipping Bill is updated in the GST system.
   • This may also require re-filing of the refund claim in the GST portal.

5. Timeline for Amendment:

   • The request for amendment must be filed before the export goods are cleared by Customs. Once the goods are cleared, the opportunity to amend the Shipping Bill is no longer available.

Conclusion:

Under Section 149 of the Customs Act, exporters can request amendments in their Shipping Bills. When dealing with issues like the reference to LUT in an IGST invoice, it is important to submit all necessary documents, including the export invoices and LUT, along with the Shipping Bill amendment application. The process involves ensuring that the information is corrected before the goods are cleared for export.

In case of any issues, the exporter can rely on the judicial precedents that support the right to amend Shipping Bills to rectify errors, provided the application is filed within the prescribed timelines.

[Shilpi Jain]

once returns are filed paying the GST on exports, submit the tax invoice for the exports where IGST has been charged, the GST-1 and GSTR-3B in which the said invoices are disclosed and relevant taxes paid.

[raghunandhaanan rvi]

In my view, no amendment to the shipping bill in EDI is possible once EGM is filed and shipping bill is in History.  This is confirmed by DG System.