GST Refunds Technical glitches need immediate attention
Table of Contents
GST Refunds Technical glitches need immediate attention
1.1 Why GST refunds issues need attention?
- Export sales are already heavily impacted and will continue to be impacted in coming months
- Even receivable for services/goods already supplied may not be received in coming months
- As exporters continue to incur costs such as salaries, interest, etc, they are facing a severe cash crunch
2.1 System glitch and/or error delaying the refunds
Error
• Refunds are stuck on account of inadvertent errors
System Glitches
• Refunds are stuck of on account of system glitches
2.2 System glitch and/or error delaying the refunds
- In many cases, refunds are stuck of on account of inadvertent errors or system glitches
- Further, no standard solution is available for such errors/ glitches
- In certain cases, although Circular/ clarification is available still the same is not found as useful
- It has been experienced by exporters that substantial time needs to be invested to receive such stuck refunds
- Such cases can be split into two basket: i.e. 1. Export with payment of GST 2. Export without payment of GST as discussed in ensuing slides
3. Rational for inadvertent errors
3.1 Process for claiming refund
1. Invoice (commercial and/or GST Invoice) is prepared)
2. E-way bill is generated (for goods)
3. Shipping Bill with details of invoice is prepared
4. GSTR-1 is prepared (with details captured in table no. 6A)
5. GSTR-3B is prepared (with details captured in table no. 3.1 column b)
3.2 Instances of mismatches/ errors
- There are instances wherein refunds are not getting processed due to discrepancies in GSTR 1 (Table 6A) vis-à-vis GSTR 3B vis-à-vis Customs EDI system
- Even Circular No. 05/2018-Customs highlighted that only 32% records of GSTR-1 are getting transferred
- Circular No. 37/11/2018-GST also clarified that the detail of invoices/Shipping Bill/Bill of Export can be amended without mentioning the earlier period up to which it can be amended
3.3 Issue and way forward
- Shipping bill can be amended for earlier years however details of invoices like date, number, etc. is not allowed to be amended after return of September of subsequent year
- Additionally, system restricts amendment of invoice only once. Thus, even in case of mismatches due to ‘-’, date etc. refunds are pending for more than two years
- Given this, appropriate resolution to these issues should be provided at the earliest
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