GST Refund for Exporters- Standard Operating Procedures

The GST Council and the Central Government of India has brought in new instructions and notifications clarifying the standard operating procedures that are used for GST Refund for exporters. In the previous few years after the introduction of the GST Regime, cases of exporters facing difficulty in claiming GST Refunds have increased drastically. To make the procedure easy the following facts and instructions have been provided by the authorities.

1.       Through the refund process of Integrated Goods and Service Tax (IGST), several taxpayers have tried to monetize the credits fraudulently on the obtained or ineligible credits related to the exported goods. Many such cases have been detected by the council in the past few months.

2.       In a number of GST Refund for exporter cases many of the exporters were found non-existent. The council found that in these cases the exporters have taken have availed ITC based on fake invoices and receipts. They have paid IGST using all these fake invoices and such ITC.

3.       The GST Council and Central Board of Indirect Taxes and Customs (CBIC) have taken measures to mitigate the risks. Risks parameters based checks that are stringent in nature. Many exporters have taken up for further verification through a system that is driven by rigorous data analytics and modern artificial intelligence technology and tools.

4.       The board has also taken care that the verifications help to mitigate the risks but also, the genuine exporters do not face any hardships in the process.

Also Read: The interest eligibility on GST Refunds for Risky Exporters

5.       The jurisdictional authorities can seek additional information and data from the exporters. But they have to adhere to the given prescribed timelines of the verification process of GST Refund for exporters-

(a)    The CGST office in jurisdiction has to complete the verification for GST Refunds for exporters within 14 days of the furnishing of the information and data in the pro forma by the exporter.

(b)   14 days after the date of submission of the pro forma and information in the prescribed format, the exporters can escalate their matter to the concerned Jurisdictional Pr. Chief Commissioner or the Chief Commissioner of the Central Tax authority by sending an email.

(c)    The Central Tax Authority’s Jurisdictional Pr. Chief Commissioner or the Chief Commissioner has to take the necessary steps and action to complete the verification process within the next seven working days.

6.       In cases where the GST Refund for exporters, remain pending for more than a month’s time period, the exporter can register their complaints and grievances in the CBIC portal. They have to provide the details of GSTIN, IEC, ports of export, CGST formation and Shipping Bill number in prescribed format.

7.       A committee headed by the GST Members, CBIC examines all such complaints and grievances and provides resolution for the issue of GST Refund Service.

8.       The board has also clarified that if any difficulty arises in the implementation of their circulars, instructions and notifications, then the cases related to the GST Refund for exporters can be brought in their attention.