GST Refund Process

Exporters Claiming GST Refund

GST Refunds can be said as the process of claiming the taxes paid by the taxpayer due to mistake or miscalculation. The GST Refund on exports has been provided in Section 54 of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Acts respectively.

Through its vide Circular No.131/1/2020-GST issued on 23rd January 2020, the Central Board of Indirect Taxes and Customs (CBIC) has issued SOP for GST Refund for exports. The circular has been issued by the department in the wake of the false cases of IGST Refund claimed based on fake or bogus invoices for ITC. Exporters can claim with the Professional Services Regarding GST Refund as well or can make an application themselves on the GST Portal. To make the process of GST Refund on exports more viable and free from malpractices, the department has taken stringent and strict actions for curbing the problem. A list of SOP has been issued through which the CBIC will be using data analytics and other measures for detecting the false refund cases. The points provided under the SOP are as follows-

  1. For all the exporters, whose refund application and scrolls have been on hold for verification purposes will be informed at the earliest by the GST Officer in the Jurisdiction or Customs.
  2. Exporters who have already been intimated for their scroll on the holding verification process has to file the Format in Annexure-A given in the circular on their interest. The details are filed in 3 detailed parts as follows-
  3. Part I: GST data
  4. Part II: Financial data
  5. Part III: Additional data related to PAN, IEC, rent agreement, etc.
  6. The verification of the GST Refund for export is to be completed within 14 days from the date of receipt of the information and data. If the same is not completed in the stipulated time then the exporter can bring the matter in the notice of the Nodal Cell.
  7. The matter can also be brought up to the Jurisdictional Pr. Chief Commissioner or Chief Commissioner in case the verification is not completed within the 14 days time limit.
  8. The Chief Commissioner or the Jurisdictional Pr. Chief Commissioner must take the appropriate measures and actions for the further verification of the application for GST Refund on exports, within 7 working days.
  9. If the issue is pending with the officials for more than a month, the exporter is allowed to apply and register for a grievance on the official portal of the CBIC. The issue is to be examined and handled by the Committee constituted of CBIC and members of GST. A proper resolution must be provided to the issue.
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Also Read: Interest eligibility on GST Refunds for Risky Exporters

Before granting any GST Refund on exports, the GST Department and CBIC scrutinize the application of the refund in full details. The following parameters are undertaken for proper observation of the refund application-

  1. Verification of invoices for the exports complying with the invoices furnished on the DGFT site.
  2. Verification of the Form GSTR 1 and Form GSTR-3B, whether filed or not.
  3. Verification of the Input Tax Credit claimed in Form GSTR 3B with Credits available in Form GSTR 2A.
  4. Verification of the Export General Manifest (EGM), shipping bills, etc.
  5. Any other documents prescribed in the circular of the CGST Act such as declarations, purchase invoices, etc.
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