GST refund claims: Exporters distressed, here's what you need to know

GST refund claims: Even though the GST council has tried it’s best for resolving issues related to Goods and Services Tax (GST), the exporters are facing various problems in claiming refunds under the regime, which is why, the Prime Minister’s Office (PMO) has now decided to call in top officials for discussing the piled up export refunds claim. 

GST which is been in effect since July 01, 2017, comes with a refund policies, under which a exporter can file for GST refund when his or her GST paid is more than the GST liability. GST refund is standardized, and the process for claiming can be done electronically and has time limit - which is 2 years. 

There are many cases where refund can be claimed under GST. As per ClearTax, they are - Dealer Exports (including deemed export) goods/services under claim of rebate or Refund, ITC accumulation due to output being tax exempt or nil-rated, Refund of tax paid on purchases made by Embassies or UN bodies, Tax Refund for International Tourists and Finalization of provisional assessment. 

Reports of Central Board of Excise and Customs (CBEC) data has revealed, that nearly 70% of refunds are still stuck even after eight months of GST roll out, the exporters claim. 

Further the data stated that, the CBEC has delivered Rs 4,000 crore worth refunds to exporters in four months since October. And about Rs 10,000 crore claims are still stuck, on the back of differences in the information tabulated by exporters to GST network in filing GSTR-1 or Table 6A or GSTR 3B and shipping bill filed with Customs, reported in Bloomberg. 

The report added, “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.”

Such practices of exporters has left no option for PMO but to step in and bring in various measures in regards to GST refund claiming. 

According to sources in PTI report, the meeting would be attended by Finance Secretary Hasmukh Adhia, Commerce Secretary Rita Teaotia, CBEC Chairperson Vanaja Sarna and top officials from the Directorate General of Foreign Trade (DGFT).  

Reportedly, the DGFT, under the Commerce Ministry, is expected to make a presentation before the Principal Secretary to the Prime Minister on the pending refunds to exporters. 

Well what will be the outcome of this meet, we will have to wait and watch, for now, here’s a step by step guide for filing GST refund, as per ClearTax. 

Step 1: Login in to GST Portal.

Step 2:  Go to ‘Services’ > ‘Refunds’ > ‘Application for Refund’

Step 3: Select ‘Refund of Excess Balance in Electronic Cash Ledger’ and click on ‘CREATE’.

Step 4 Once you click on ‘CREATE’ in the above step a screen will appear reflecting all balances in the Electronic Cash Ledger which can be claimed as refund.

You can enter values of the refund to be claimed in the editable ‘Refund Claimed’ table.

Step 5: Select the Bank Account (in which you want the refund to be credited) from the drop-down and click on ‘SAVE’.

Step 6: Click on the checkbox in the declaration. Select the name fo the ‘Authorised Signatory’ from the drop-down.

Based on the type of your organisation click on ‘SUBMIT WITH DSC’ or ‘SUBMIT WITH EVC’

Once RFD – 01 is filed Refund ARN Receipt is generated in PDF format. After inspection by a GST officer refund will be credited to the bank account.

Recently, the council, agreed to introduce an e-Wallet scheme with effect from April 01, 2018.
The e-Wallet scheme is basically the creation of electronic eWallets, which would be credited with notional or virtual currency by the DGFT. This notional / virtual currency would be used by the exporters to make the payment of GST /IGST on the goods imported / procured by them so their funds are not blocked.