In this article we tried to simplify the procedure
and mechanism of claiming refund under the export of goods with payment of tax.
If any exporter make an export of goods out of India then he will be eligible
to claim input tax credit which have been accumulated on the purchase of goods
which utilized for making export of goods. There are two ways by which the
exporter can claim refund of accumulated input tax credit and out of which pay
IGST on export of goods is one of.
Where the exporter opts to pay IGST on export of
goods (instead of claiming refund of unutilized ITC by making export against
LUT/Bond), he shall be eligible of refund for the IGST paid by him.
Manner of
claiming refund of the IGST paid on export of goods is dealt with under Rule 96
of the CGST Rule, 2017.
There is no specific form that needs to be filled
out for claiming refund of IGST paid on export of goods. The shipping bill
filed by an exporter of goods shall be deemed to be an application for refund
of integrated tax paid on the goods exported out of India.
Details of relevant export invoices in respect of
export of goods contained in Form GSTR-1 shall be transmitted electronically by
the common portal to the system designated by the Customs and the said system
shall electronically transmit to the common portal, a confirmation that the
goods covered by the said invoices have been exported out of India.
Steps for making
export with payment of Tax
Say, DPX is an Exporter
·
DPX purchases
goods from XYZ charging IGST (INR 166/-)
·
DPX to avail
input tax credit
· DPX to issue two
invoices for, say, $10: One for the importer in $; and another for customs
purposes in INR (say $10 * INR80 = INR800). INR80 being rate of exchange as per
notified by the Board under section 14 of the customs Act, 1962 on the date of
time of supply of such goods in terms of section 12 of the GST Act.
·
IGST to be
charged on tax invoice issued in INR (say, 800/- * 18% = 144/-) meant only for
the purpose of GST.
·
DPX to debit
electronic credit ledger with IGST applicable of INR 144/- on the export;
otherwise pay through E-cash ledger.
·
DPX to bring
proof of export and satisfy all the prescribed conditions.
·
Refund of INR
144/- to be allowed on automatic processing of shipping bill by customs once
FORM GSTR-3B / GSTR-1 and EGM is filed (Rule 96 of the GST Rules to be
followed).
Pre conditions
of claiming refund
1.
Such application
shall be deemed to have been filed only when the person in charge of the
conveyance carrying the export goods duly files (a departure manifest or) an
export manifest or an export report covering the number and the date of
shipping bills or bills of export. Thus, filing of a correct EGM is a mandatory
condition for treating the shipping bill of export as a refund claim.
2.
Filing of a
valid return in Form GSTR-1 andGSTR-3B is another pre-condition for considering
the shipping bill / bill of export as the claim for refund. If there is any
mismatch between the data furnished by the exporter of goods in shipping bill
and those furnished in statement of outward supplies in FORM GSTR-1, such
application for refund of integrated tax paid on the goods exported out of
India shall be deemed to have been filed on such date when such mismatch in
respect of the said shipping bill is rectified by the exporter.
3.
The applicant
should have undergone Aadhaar Authentication in the manner provided in rule
10B.
Automatic credit
of refund in the bank account
·
If the returns
are correctly filed and EGM details are furnished, refund is automatically
electronically credited to the bank account of the applicant mentioned in the
taxpayer exporters registration particulars.
·
Exporter may
login at ICEGATE and verify whether there is any deficiency in the returns or
EGM; if so, he should rectify/remove that deficiency.
Disclaimer:
All the Information is based on the notification, circular and order issued by
the Govt. authority and judgement
delivered by the court or the authority information is strictly for educational
purposes and on the basis of our best
understanding of laws & not binding on anyone.
