A validation has been introduced in the Goods and Services Tax Network (GSTN) system by the Ministry of Finance, which ensures that the Integrated Goods and Service Tax (IGST) paid on the export goods in any particular month is not less than the refund claimed by the exporter.

Seeking resolution of problems which have hindered sanction of refund of IGST paid on exports, representations were received from the exporters/trade associations, earlier.

But, the representations received when clubbed with the analysis of data received from GSTN shows that the exporters have committed mistakes while filing GSTR-1 and GSTR-3B.

This is believed to an interim solution subject to undertakings/submission of CA certificates by the exporters and the data provided by GSTN has revealed that this validation has failed in a number of cases.

The cases where there is no short payment, the Customs policy wing would prepare a list of exporters whose cumulative IGST amount paid against exports and interstate domestic outward supplies, for the period July' 2017 to March' 2018 mentioned in GSTR-3B is greater than or equal to the cumulative IGST amount indicated in GSTR-1 for the same period.

GSTN should send a confirmatory e-mail to the exporters concerning the transmission of records to Customs EDI system. A copy of the certificate is required to be submitted to the jurisdictional GST office.
In such Cases where short payment is involved, IGST amount paid against exports and interstate domestic outward supplies together, for the period of July' 2017 to March' 2018 mentioned in GSTR-3B is less than the cumulative IGST amount indicated in GSTR-1 for the same period.
E-mails are to be sent by GSTN to each exporter to inform the exporter that their records are held up due to a short payment of IGST.

The exporters would have to make the payment of IGST equal to the short payment in GSTR 3B of subsequent months to make sure that the total IGST refund being claimed in the Shipping Bill/GSTR-1 is paid.

When the aggregate IGST refund amount for the given period is upto Rs 10 lacs, the exporter has to submit proof of payment.

The exporter would also give an undertaking saying, they would return the refund amount if it is found to be not due to them at a later date.

Failure to submit CA certificate shall affect the future IGST refunds of the exporter.