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How Can Exporters in Mundra Resolve IGST Refund Issues?

Understanding IGST Refund Clarifications for Mundra Exporters

The process of claiming IGST refunds can be complex, especially for exporters dealing with various shipping bills (SBs) and compliance requirements. This blog aims to simplify the clarifications regarding IGST refunds as provided in the recent Mundra Customs Notification. Here’s a step-by-step guide to help you understand and resolve common issues faced by exporters in Mundra.

Key Points from the Clarifications

IGST Integration Status Report: This report includes all SBs, irrespective of whether IGST is paid or not. However, scrolls (refund processing lists) are generated only for SBs where IGST payment status is marked as 'P' (Paid).

Missing SBs in the Report: If an SB is not listed in the report, it indicates that the return data for that SB has not been transmitted by GSTN. This can occur due to incorrect or non-filing of GSTR-1/6A and GSTR-3B forms.

Error Codes and Descriptions:

• SB000: Successful matching of Customs-GSTN data, ready for scrolling.
• If SBs appear in the temporary scroll but not in the final scroll, it could be due to account validation issues by PFMS or suspension of the IEC by the Customs House.
• For PFMS validation issues, exporters should contact the DC (Refund) or PO (EDI) with a letter from their bank providing correct account details, AD Code, and IFSC Code.

Resolving Specific Error Codes:

• SB001: Can be corrected by amending the SB details in GSTR-1. The amendment form (Form 9A) is available for this purpose.
• SB006: Can be corrected by ensuring that the Gateway EGMs (Export General Manifest) are filed electronically at the gateway port. Exporters need to coordinate with their liners to file supplementary EGM or EGM amendment at the Gateway Port Service Centre and get it approved by the AC/DC.

No Solution for SB005 Yet: There is currently no resolution for SB005, but changes in validation logic or procedure are being worked on by DG Systems.

Step-by-Step Guide to Resolving IGST Refund Issues

Check IGST Payment Status:

• Ensure your SBs are marked as 'P' for IGST payment status. If not, make the necessary payments and update the records.

Verify Return Filings:

• Ensure that GSTR-1/6A and GSTR-3B forms are filed correctly. Mistakes in these forms can prevent SB data transmission.

Understand and Address Error Codes:

• For SB000: If your SBs are in the temporary scroll but not the final one, check for account validation issues. Contact the relevant authorities with the correct banking information.
• For SB001: Correct the SB details in GSTR-1 using the amendment form (Form 9A).
• For SB006: Work with your liners to file the necessary EGMs at the gateway port and get them approved.

Seek Assistance for Unresolved Issues:

• For persistent issues, especially with SB005, stay updated with the latest notifications from DG Systems for any procedural changes or validation logic updates.

Conclusion

Navigating IGST refunds can be challenging, but by understanding the clarifications and following the outlined steps, exporters in Mundra can effectively resolve common issues. Always ensure accurate filing and stay in contact with the relevant authorities to smoothen the refund process. For further details, refer to the Mundra Customs Notification and keep abreast of any new updates or procedural changes.