Extension of Sanction for Pending IGST Refunds by CBIC
Recently, the CBIC or the Central Board of Indirect Taxes and Customs has notified an extension of sanction for pending IGST refunds in the cases where the records have not been transferred to ICEGATE due to mismatch error in GSTR 1 and GSTR 3B. Further, the same has been notified by way of General Circular No 04/ 2021.
In this blog, we will discuss about the concept of ICEGATE, together with the extension of sanction for pending IGST refunds by CBIC.
Concept of ICEGATE
The term ICEGATE stands for the Indian Customs Electronic Gateway. It is a national web portal of Indian Customs, launched by CBIC. Further, this portal offers e-filing services to Cargo Carriers, Traders, and other Trading Partners on an electronic basis.
Also, it shall be considerate to take into consideration that this web portal is internally associated with multiple partner agencies, such as follows:
- Reserve Bank of India;
- Director General of Foreign Trade;
- Director General of Commercial Intelligence and Statistics;
- Ministry of Steel;
- Directorate of Valuation;
- Other various partner government agencies that are engaged in the EXIM trade enabling faster customs clearance;
Moreover, the host of services offered by way of Indian Customs are as follows:
- Electronic Filing of the BOE (Bills of Entry) (work as Import Goods Declaration);
- Shipping Bills (works as Export Goods Declaration);
- E-payment of Customs Duty;
- Free Web based Common Signer Utility, etc.;
Also, Read: Implications of Union Budget 2021 on GST Act
Concept of IGST Refunds
All the individuals who have exported their goods or services or both, out of India, on the payment of IGST (Integrated Goods and Service Tax) are qualified to claim the refund of the Integrated Tax so paid. However, it shall be relevant to state that the same is possible only after the fulfilment of the conditions prescribed, such as filing of the correct and adequate information concerning the GST Registration Number in both GSTN and Customs System.
Reasons for Extension of Sanction for Pending IGST Refunds
The main reason behind the extension of Sanction for Pending IGST Refunds is that the records have not been transferred to ICEGATE due to mismatch error in GSTR 1 and GSTR 3B.
Earlier Measures taken by CBIC
Earlier, the Central Board of Indirect Taxes and Customs had provided an interim measure for the Shipping Bills that are issued up to 31.03.2019, by way of Circular No. 12/ 2018 and 25/ 2019, issued on 29.05.2018 and 27.08.2019, respectively.
Current Measures taken by CBIC
It shall be pertinent to state that the IGST refunds applicable to the Shipping Bills, which are issued after 31.03.2019 and which are having a mismatch error between GSTR 1 and GSTR 3B are stuck as well.
As a result, CBIC has decided to extend the facility as offered by way of Circular No. 12/ 2018 and 25/ 2019, issued on 29.05.2018 and 27.08.2019, respectively, to these shipping bills also. That means the provisions of the circulars mentioned above will be applicable “mutatis mutandis” to the Shipping Bills, which are filed up to 31.03.2021.
Other Necessary Requirements
The other necessary requirement stated by the Central Board of Indirect Taxes and Customs is that the assessee needs to obtain a corresponding Certificate from the Chartered Accountant declaring that there is no discrepancy between the actual amount paid on the exports of goods and the IGST amount refunded on the exports. The same will be for the period ranging between April 2019 to March 2020 and April 2020 to March 2021. Also, the due date for filing such certificate is 31.03.2021 and 30.10.2021, respectively.
Directions for Customs Zones
Based on the circular issued by the Central Board of Indirect Taxes and Customs, all the respective Customs Zones are directed to provide a list of GSTINs (Goods and Service Tax Identification Number) who have availed benefits under the provision stated in Paragraph 3A and 3B of the circulars mentioned above and have not furnished the certificate of declaration from the Chartered Accountant to the board by the 15.04.2021 for the IGST refunds concerning the financial year 2019 to 2020. Further, for the financial year 2020 to 2021, the date of furnishing the certificate is 15.11.2021.
In a nutshell, the CBIC has notified an extension of sanction for pending IGST refunds by way of a General Circular. The said extension will relate to the cases where the records have not been transferred to ICEGATE due to mismatch error in GSTR 1 and GSTR 3B.
Also, the Customs Zones are asked to provide a list of GSTINs who have benefited from the extension but have not submitted the certificate of declaration as issued by a practising Chartered Accountant.