The SB0005 issue in shipping bills is typically encountered when there is a mismatch or error in the IGST refund claim process, often related to export transactions. This issue can prevent the processing of IGST refunds for exports made under the GST system, especially when the goods were exported in a prior year (such as 2020 in your case).
The SB0005 issue is usually linked to discrepancies in the shipping bill or export invoice details, which cause the IGST refund to be withheld or delayed. Below are the steps you can take to resolve the SB0005 issue related to IGST refunds, specifically for transactions that were made in 2020:
Steps to Resolve the SB0005 Issue
- Check the Shipping Bill Details
- Shipping Bill details should match the data filed under GST Returns (GSTR-1 and GSTR-3B). Ensure that the shipping bill contains the correct IGST payment details, GSTIN, Invoice Number, Date of Export, and other relevant fields.
- Any mismatch between the shipping bill and GSTR-1 details could lead to the SB0005 error.
- Verify whether the export shipment has been filed with the correct export code and HSN codes.
- Verify the IGST Payment Details
- Ensure that IGST was correctly paid at the time of export. If there was an issue with the IGST payment or it was incorrectly paid, you may need to correct this in the GST system.
- Ensure that the IGST payment was reflected in the Exporter's GST Returns (GSTR-3B) and was properly declared as an export.
- Reconcile Shipping Bill and GST Filing
- Reconcile the export shipping bills with the GST returns for the relevant period (in your case, 2020).
- Sometimes errors arise if the shipping bill has been filed with a customs office but is not reflected in the GST system due to system delays or mismatches.
- If necessary, amend the GST return (GSTR-1) for the period in which the export was made, ensuring all export-related details are properly filed.
- Check the IGST Refund Status
- Log in to the GST Portal and check the IGST Refund Status under the Refunds section.
- In some cases, the issue might be that the refund claim is in hold or pending due to a minor clerical issue, such as incorrect bank account details or exporter profile details.
- Ensure that the bank account details are correctly updated in the GST portal.
- File a Refund Application
- If all the details match and the shipping bill is still pending for processing, you can file a refund application through the GST Refund Portal.
- Go to Services > Refunds > Application for Refund.
- Choose the correct refund type (IGST Refund on Export of Goods), and fill in the details of the export shipment.
- Attach the necessary documents, such as export invoices, shipping bills, and proof of IGST payment.
- If all the details match and the shipping bill is still pending for processing, you can file a refund application through the GST Refund Portal.
- Check with Customs Authorities
- If the SB0005 error is due to an issue at the Customs Department, contact the relevant Customs Commissionerate to ensure the export transaction is properly registered in the Customs EDI system and correctly linked with the GST system.
- Sometimes customs-related errors, such as missing or delayed updates in the system, can cause the SB0005 error.
- Revalidate the Exporter’s Details
- Verify that your GSTIN, Export Code, and IEC (Import Export Code) details are valid and updated in both the Customs and GST systems.
- Make sure that all GSTIN-related information is correctly entered into the shipping bill and aligns with the exporter's GST profile.
- Raise a Ticket with GST Helpdesk
- If the issue persists, raise a ticket with the GST Helpdesk or Customs Helpdesk for further clarification on the SB0005 error.
- In your communication, provide the shipping bill number, GSTIN, export invoice, and related export details.
- Check for Systemic Issues or Updates
- Sometimes, systemic issues or updates in the GST or Customs Portal can cause temporary errors. If this is the case, it may be necessary to wait for the system to update and re-process the export documents.
Additional Steps if the Issue Dates Back to 2020
If the export in question took place in 2020, there may be further challenges related to older records. In this case:
- Review Historical Refund Applications: If you previously submitted a refund application in 2020, confirm whether it was processed correctly. Look for any outstanding refund claims or discrepancies.
- File for Pending Refund: If the export transaction is not reflected properly for the relevant year (2020), file a refund application for the previous period and include all required documents.
- Consider Filing an Application for Advance Ruling: If the issue is related to the specific classification or eligibility of refunds, consider seeking an advance ruling from the Authority for Advance Ruling (AAR).
Conclusion
The SB0005 issue generally stems from mismatched or incorrect export documentation, which can delay or prevent the IGST refund under the GST framework. To resolve the issue, ensure that the shipping bill details match the GST filings, check for any customs-related delays, and reconcile all related data. If the issue persists, escalate it with the relevant authorities, such as Customs or the GST Helpdesk, to address the issue.
If the refund is still pending after verifying all details and reconciling the records, filing a formal refund application or seeking an advance ruling may help resolve the matter.