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GST refund process for exports with payment of IGST

GST refund process for exports with payment of IGST

GST refund process for exports with payment of IGST under the present return filing system. Key Steps in the GST Refund Process for Exports with IGST Payment

(a) Filing of Shipping Bill on ICEGATE

  • The shipping bill serves as a key document for processing refunds.
  • Export-related details must match between the GST portal and ICEGATE to avoid delays.

(b) Filing of GSTR-1 (Declaration of Export Details)

  • Details to be entered in Table 6A – Exports Invoices of GSTR-1:
    • Invoice Date
    • Port Code
    • Shipping Bill Number & Date
    • Invoice Value & Taxable Value
    • IGST Payment Option (With Payment of Tax)
    • Differential Tax Rate (if applicable)
  • In the case of export of services, certain fields will be left blank.

(c) Filing of GSTR-3B (Summary of Tax Liability)

  • Enter details in Table 3.1(b) – ‘Outward taxable supplies (zero-rated)’.
  • IGST amount should match or exceed the amount in Table 6A of GSTR-1.
  • Any mismatch between GSTR-1 and GSTR-3B may delay the refund.

(d) Refund Processing

  • For Export of Goods:

    • No separate refund application required.
    • Refund is auto-processed based on GSTR-1, GSTR-3B, and ICEGATE data.
    • ICEGATE validates shipping bill details and credits the refund to the bank account.

  • For Export of Services:

    • Form GST RFD-01 must be filed separately.
    • Process:
      • Log in to GST portal.
      • Navigate to Services > Refunds > Application for Refund > Export of Services with payment of tax.
      • Fill in required details and upload supporting documents.
      • Submit and generate Application Reference Number (ARN).
      • Track refund status via GST portal.

Checklist for Successful Transmission to ICEGATE:

GST refund data is successfully transmitted from the GST system to ICEGATE for processing of IGST paid on the export of goods, follow these steps:

  1. File Both GSTR-1 and GSTR-3B
    • Ensure that Form GSTR-1 (detailing exports) and GSTR-3B for the corresponding tax period are correctly filed.
  2. Report Export Invoices in Table 6A of GSTR-1
    • Enter all export invoice details in Table 6A of Form GSTR-1 for the relevant tax period.
  3. Provide Correct Shipping Bill & Port Code Details
    • Accurately mention Shipping Bill Number, Shipping Bill Date, and Port Code in Table 6A of GSTR-1.
    • Ensure that the Port Code is a valid six-character alphanumeric code as prescribed by ICEGATE.
  4. Declare IGST & Cess in the Correct Table of GSTR-3B
    • IGST and Cess amounts must be reported under Table 3.1(b) of GSTR-3B (Outward taxable supplies – Zero-rated supply).
    • Do not mistakenly report them under Table 3.1(a) (Domestic sales) or Table 3.1(c) (Other supplies including exempt & nil-rated supplies).
  5. Ensure IGST Paid in GSTR-3B Matches or Exceeds GSTR-1
    • The IGST and Cess amount in Table 3.1(b) of GSTR-3B must be equal to or greater than the IGST and Cess declared in Table 6A and 6B of GSTR-1.
    • Impact of Validation Failure: If any of the above conditions are not met, your data will not be transmitted to ICEGATE. This will lead to a delay or rejection of IGST refund processing for exports.
  6. Steps to Provide Export Invoice Details in Form GSTR-1 (Table 6A) : To ensure accurate reporting of export invoices in Form GSTR-1, follow these steps:
  • Enter Export Invoice Data in Table 6A of Form GSTR-1 : Ensure all export invoices for the relevant tax period are reported in Table 6A.
  • Use the Same Invoice Number as in the Shipping Bill : The invoice number in GSTR-1 must exactly match the invoice number in the Shipping Bill filed with Customs.
  • Select the Correct Tax Payment Category (WPAY/WOPAY) : Choose WPAY (With Payment of Tax) if IGST is paid on exports. And Choose WOPAY (Without Payment of Tax) if exporting under LUT/Bond.
  • Provide Accurate Shipping Bill & Port Details : Enter Shipping Bill Number, Shipping Bill Date, and Port Code as per the customs records. Port Code must be a six-character alphanumeric code (as per ICEGATE).
  • Report Invoice Value & Taxable Value Correctly :
    • Invoice Value = Total value of exported goods (including tax & other charges).
    • Taxable Value = Value of goods before tax (excluding IGST & Cess).
  • Report IGST & Cess (If Applicable) : IGST and Cess amount should be reported only for WPAY invoices (exports with tax payment). Ensure that IGST reported in Table 3.1(b) of GSTR-3B matches or exceeds the IGST declared in Table 6A of GSTR-1.

Guidance on claiming refunds for IGST and Cess paid on the export of goods

Guidance on claiming refunds for IGST and Cess paid on the export of goods. Key Points to Avoid Refund Delays Here are some key takeaways:

  • Eligibility: Refunds are available if the taxpayer has filed both GSTR-1 (including shipping bill details) providing Export details in Table 6A of GSTR-1 along with Shipping bill details having Integrated Tax & Cess levied and GSTR-3B for the relevant tax period for which GST refund is to be paid
  • Automatic Refund Process: The shipping bill itself acts as a refund application, eliminating the need for a separate refund claim. The Shipping Bill itself is treated as a refund application. No need to file a separate refund claim for IGST paid on exports.
  • Validation with ICEGATE: GST data is shared with ICEGATE, which processes the refund based on shipping bill and EGM data.
  • Corrections Allowed: Export invoice details can be added/amended in subsequent GSTR-1 filings, and errors in GSTR-3B can be corrected in future filings. After successful validation, ICEGATE processes the refund and credits the refund amount directly to the taxpayer’s bank account.
  • Bank Account for Refund: The refund is credited to the bank account registered with ICEGATE/Customs. ICEGATE shares payment details with the GST Portal.
  • Tracking Refund Status: Refund status can be tracked through the GST portal. The GST Portal sends an SMS and email notification to the taxpayer upon refund disbursement.
  • GST refund will be credited in the Bank account mentioned by you with the ICEGATE/ Customs.
  • Ensure invoice details match with shipping bill data on ICEGATE.
  • Verify IGST amounts in GSTR-1 (Table 6A) and GSTR-3B (Table 3.1(b)) are correct.
  • For export of services, RFD-01 must be filed manually, and ARN tracking is essential.
  • Bank details should be correct and pre-validated on the GST portal to avoid credit failures.

In summary, we needed to ensure the correct shipping bill number, date, and port code in GSTR-1 (Table 6A). File both GSTR-1 and GSTR-3B for the relevant period. IGST paid in GSTR-3B (Table 3.1(b)) must match or exceed IGST declared in GSTR-1. Verify that EGM has been filed correctly by the shipping carrier.

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