TaxTMI 
TaxTMI 
TaxTMI 
Clarifications on export related refund issues.
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....¤— - 793001 Crescens Building, M.G Road, Shillong-793001,ч/Tel.Nos.91-0364-2500131/2502052. /Fax nos. 91-0364-2224747/2502047, /Email: [email protected] Trade Notice No. 05/2018 Dated, Shillong the 20th March, 2018 Subject: Clarifications on exports related refund issues-reg. The Central Board of Excise & Customs [CBEC]-GST Policy Wing has issued a Circular No. 37/11/2018-GST dated 15th March, 2018 for the Trade and as well as all concerned regarding clarifications on exports related refund issues - 2. Board vide Circular No. 17/17/2017 - GST dated 15th November 2017 and Circular No. 24/24/2017 GST dated 21st December 2017 clarified various issues in relation to processing of claims for refund. Since then, several representations have been received seeking further clarifications on issues relating to refund. In order to clarify these issues and with a view to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (CGST Act), hereby clarifies the issues raised as below: 2.1 Non-availment of drawback: T....
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....r shall refer to the said Circular and process the refund application accordingly. 4. Exports without LUT: Export of goods or services can be made without payment of integrated tax under the provisions of rule 96A of the Central Goods and Services Tax Rules, 2017 (the CGST Rules). Under the said provisions, an exporter is required to furnish a bond or Letter of Undertaking (LUT) to the jurisdictional Commissioner before effecting zero rated supplies. A detailed procedure for filing of LUT has already been specified vide Circular No. 2 Page 8/8/2017 -GST dated 4th October, 2017. It has been brought to the notice of the Board that in some cases, such zero rated supplies have been made before filing the LUT and refund claims for unutilized input tax credit have been filed. 4.1. In this regard, it is emphasised 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. 5. Expo....
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....as been communicated the deficiencies in respect of a particular application, the applicant shall furnish a fresh refund application after rectification of such deficiencies. It is therefore, clarified that there can be only one deficiency memo for one refund application and once such a memo has been issued, the applicant is required to file a fresh refund application, manually in FORM GST RFD-01A. This fresh application would be accompanied with the original ARN, debit entry number generated originally and a hard copy of the refund application filed online earlier. It is further clarified that once an application has been submitted afresh, pursuant to a deficiency memo, the proper officer will not serve another deficiency memo with respect to the application for the same period, unless the deficiencies pointed out in the original memo remain unrectified, either wholly or partly, or any other substantive deficiency is noticed subsequently. 7. Self-declaration for non-prosecution: It is learnt that some field formations are asking for a self-declaration with every refund claim to the effect that the claimant has not been prosecuted. 7.1. The facility of export under ....
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....of the GST laws. An exporter, at the time of supply of goods declares that the goods are for export and the same is done under an invoice issued under rule 46 of the CGST Rules. The value recorded in the GST invoice should normally be the transaction value as determined under section 15 of the CGST Act read with the rules made thereunder. The same transaction value should normally be recorded in the corresponding shipping bill / bill of export. 9.1 During the processing of the refund claim, the value of the goods declared in the GST invoice and the value in the corresponding shipping bill / bill of export should be examined and the lower of the two values should be sanctioned as refund. 5 Page 10. Refund of taxes paid under existing laws: Sub-sections (3), (4) and (5) of section 142 of the CGST Act provide that refunds of tax/duty paid under the existing law shall be disposed of in accordance with the provisions of the existing law. It is observed that certain taxpayers have applied for such refund claims in FORM GST RFD-01A also. In this regard, the field formations are advised to reject such applications and pass a rejection order in FORM GST PMT-03 and communicat....
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....er(s) for which refund claim has been filed, however, cannot spread across different financial years. 12. BRC/FIRC for export of goods: It is clarified that the realization of convertible foreign exchange is one of the conditions for export of services. In case of export of goods, realization of consideration is not a pre-condition. In rule 89 (2) of the CGST Rules, a statement containing the number and date of invoices and the relevant Bank Realisation Certificates (BRC) or Foreign Inward Remittance Certificates (FIRC) is required in case of export of services whereas, in case of export of goods, a statement containing the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices is required to be submitted along with the claim for refund. It is therefore clarified that insistence on proof of realization of export proceeds for processing of refund claims related to export of goods has not been envisaged in the law and should not be insisted upon. 13. Supplies to Merchant Exporters: Notification No. 40/2017 - Central Tax (Rate), dated 23rd October 2017 and notification No. 41/2017 - Integrated Tax (Rate) dated 23....
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....ces are scrutinized. 14.2 A list of documents required for processing the various categories of refund claims on exports is provided in the Table below. Apart from the documents listed in the Table below, no other documents should be called for from the taxpayers, unless the same are not available with the officers electronically: Type of Refund Export of Services with payment of tax (Refund of IGST paid on export of services) Export (goods or services) without payment of tax (Refund of accumulated ITC of IGST / CGST/SGST / UTGST / Cess) Table Documents Copy of FORM RFD-01A filed on common portal √ Copy of Statement 2 of FORM RFD-01A Invoices w.r.t. input, input services and capital goods BRC/FIRC for export of services √ Undertaking / Declaration in FORM RFD-01A Copy of FORM RFD-01A filed on common portal √ Copy of Statement 3A of FORM RFD-01A generated on common portal Copy of Statement 3 of FORM RFD-01A Invoices w.r.t. input and input services BRC/FIRC for export of services Undertaking/Declaration in FORM RFD-01A 8 Page 15. These instructions shall apply to exports made on or after 1st July, 2017. It is also advised that refunds may....