GST: CBEC Clarifies Export Refund Issues [Read Circular]

The Central Board of Excise and Customs (CBEC) today clarified certain issues relating to the export refund under GST. A circular issued by the Board, in this regard, deals with issues such as non-availment of the drawback, non-processing of refund claims on account of data mismatches, Exports without LUT, Exports after the specified period, Deficiency memo, Self-declaration for non-prosecution, refund of transitional credits etc.

With regard to the non-availment of the drawback, the circular said that a supplier availing of drawback only with respect to basic customs duty shall be eligible for the refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax/compensation cess under the said provision. It is further clarified that refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of the drawback in respect of the central tax.

Regarding the issue of non-processing of refund claims on account of mismatches between data contained in FORM GSTR-1, FORM GSTR-3B and shipping bills/bills of export. The Board, in this regard, has advised that while processing refund claims on account of zero-rated supplies, information contained in Table 9 of FORM GSTR-1 of the subsequent tax periods should be taken into cognizance, wherever applicable.

“Field formations are also advised to refer to Circular No. 26/26/2017 – GST dated 29th December 2017, wherein the procedure for rectification of errors made while filing the returns in FORM GSTR-3B has been provided. Therefore, in case of discrepancies between the data furnished by the taxpayer in FORM GSTR-3B and FORM GSTR-1, the officer shall refer to the said Circular and process the refund application accordingly,” the bench said.

On the issue of Exports without LUT, the Board clarified that the substantive benefits of zero-rating may not be denied where it has been established that exports in terms of the relevant provisions have been made. “The delay in furnishing of LUT in such cases may be condoned and the facility for export under LUT may be allowed on ex-post facto basis taking into account the facts and circumstances of each case.”