CBIC引入额外保障措施，用于核查缴纳税款后的出口货物IGST退税

In order to make India’s exports competitive in the global markets and in line with the principles of international trade and commerce of zero-rating exports, the GST and customs laws have provisions on place for grant of refunds in case of input taxes paid on exported goods. 

On similar lines, the GST law also has an alternative route to benefit the exporters – ‘export of goods with payment of taxes’, wherein the taxes paid on sale would be refunded.

In line with this initiative, the Central Board of Indirect Taxes and Customs (‘CBIC’) has brought in several exporter friendly and self-assessment procedures by way of complete automation of the procedure for claiming IGST refunds (Instruction No. 15/2017 - Cus dated 9 October 2017).

However, the CBIC has noticed instances of fraudulent ITC claims using ineligible documents and subsequent utilisation of the credit for the purpose of payment of IGST exports. 

In addition, there were substantial variations between the FOB value declared in the Shipping Bill and the Taxable Value declared in the GST returns, with the intent of higher IGST payment using utilisation of available credit.

In order to curb these practices, the CBIC has issued Circular No. 16/2019-Customs dated 17 June 2019 introducing additional verification of issue of IGST refunds on export of goods with payment of taxes.

The CBIC seeks to establish a mechanism for identification of suspicious cases, which alerts the customs officers to examine the goods. Thereafter, all IGST refunds pertaining to the export shipment would be issued only upon verification by the GST field formations and after following the existing procedure for claim of IGST refunds on export of goods. 

The summary of the Circular is given below:

In addition to the existent procedure for claiming IGST refunds (Instruction No. 15/2017 - C us dated 9 October 2017), the CBIC has prescribed the following:

1. 识别可疑案件：GST当局将制定适当标准以识别高风险出口商（国家层面），并与海关风险管理中心（RMCC）及各CGST首席专员共享。GST当局将不定期移交以往已发放的IGST退税详情及其他相关信息。
2. 生成警报：RMCC应向海关官员发出警报，并指示对所有出口货物进行强制性全面检查。
3. 出口货物检查：海关官员应根据RMCC警报检查货物，若未发现异常，则按常规海关程序放行。
4. 暂停IGST退税：任何与相关出口货物装运单有关的IGST退税申请，在收到GST当局报告前均应暂缓处理。
5. GST部门核实：GST当局应根据GST政策部门发布的标准作业程序（SOP）核实IGST退税申请及其他相关事项，并在30天内向IGST首席专员报告。
6. 向RCMC报告：IGST首席专员应在收到GST当局报告后的5个工作日内，汇总所有案件报告并转发给RMCC及相关出口海关港口。
7. 后续处理：
   1. 核实后无异常：出口港海关官员应根据即将发布的建议，按GST当局核实的金额处理IGST退税。
   1. 核实后发现违规：退税申请将不予处理。

The Circular goes a long way in brining transparency in the process as well as keeping a check on the fraudulent practices by exporters to claim IGST refund at the cost of genuine taxpayers who have been relentlessly following up with the GST authorities time and again for the grant of IGST refunds.

Read more on Clarification on GST Refund related issues