CBEC’s Directive on Processing of Refund of IGST paid on Export of Goods [Read Instruction]


The Central Board of Excise and Customs (CBEC), on Monday issued a directive regarding guidelines on processing of refund of Integrated Goods and Services Tax (IGST) paid while exporting goods under Rule 96 of the Central Goods and Services Tax (CGST) Rules, 2017.

As per Rule 96, IGST paid while exporting goods out of India can claimed as refund by the exporter on submission of the shipping bill alongwith export general manifest (EGM) and valid returns in form GSTR-3 and GSTR-3B. For this purpose, shipping bill shall be deemed as refund application.

The 22nd Meeting of the GST Council on last Friday declared that tax refund for the months July and August will be given to the exporters from 10th and 18th of this month. The payment would be in the form of cheques.

The CBEC missive advised that the exporters must file their returns in the prescribed form in timely manner without waiting for the last date so that the refund can be processed.

It further pointed out that for refund purpose, the exporters have declared their bank account details used for the customs purpose instead of one declared in the GST registration form. Though it is said that this may not affect the payment of refund, exporters were advised to either change the bank account declared with the Customs to align it with their GST registration particulars or add the account registered with the Customs in the Registration details.

The directive also speaks about the situations where payment of refund is being withheld on request of the Commissioner. The Commissioners are asked to place a separate mechanism for keeping records in such cases.

Read the full text of the Instruction below.