70% IGST refund stuck: CBEC

New Delhi, Feb. 25: As about 70 per cent of GST refunds stuck due to flawed information, the CBEC has asked exporters to amend the details in the final returns of subsequent month to enable the department to process the refund claims by March.

The Central Board of Excise and Customs ( CBEC) has sanctioned ` 4,000 crore worth refunds to exporters in 4 months since October. Still about ` 10,000 crore worth claims are stuck due to discrepancies in the information furnished by exporters to GST Network ( GSTN) in filing GSTR 1 or Table 6A or GSTR 3B and shipping bill filed with Customs.

“The analysis of data indicates that only about 32 per cent records of GSTR 1/ Table 6A have been transmitted from GSTN to Customs. In other words, a majority ( about 70 per cent) of refund claims are held up either due to insufficient information or lack of due diligence on the part of exporter while filing GST returns,” the CBEC said in a communication to Principal Commissioners.

The analysis of claims data post October 2017 indicate that while the

quantum of error is decreasing, a large number of exporters are still filing incomplete GSTR 1 or Table 6A, where shipping bill number or date or port code are missing.

“These records are not processed/ forwarded to customs by GSTN. E- mails

have been sent to exporters asking them to correct their records through amendment process of GSTR 1 i e through Table 9 of GSTR 1 of the following month,” the CBEC said.

The CBEC had in October 2017 started refunds for exporters of goods who have paid Integrated GST ( IGST) and have claimed refund based on shipping bill by filling up Table 6A. While for those businesses making zero rated supplies or those want to claim input credit have to fill Form RFD- 01A.