IGST Refund – Under the GST law, exporters must have to pay the Integrated Goods and Services Tax (IGST) while exporting the goods from one place to another. Firstly, they have to pay the IGST on exports and after then they get refunds. Some of the companies are not getting IGST refunds even though it would not require any calculation
No Refunds for Minor Mistakes
Whenever any of the firms forget to mention the tax invoice number/amount even after paying the IGST, in this case, the firms will not get refunds, as claims are rejected. There is no option available for correction. Refunds in such kind of cases may be provided after checking whether the IGST has been paid by the firm or not.
Read Also: How to File GST Refund Claims Manually? Step by Step Guide
Confusion Over Exchange Rates
Due to the confusion on the exchange rates, the refunds of exporters in July month 2017 was delaying. It was compulsory for the exporters to utilize the RBI exchange rate for calculating the GST to mention in the tax invoice as well as the customs exchange rate for the shipping bill. The two exchange rates automatically resulted in two values. Due to this, several claims were rejected and later on the matter was solved out.
GSTIN was not Mentioned
If the firms forget to mention the GSTIN on the shipping bills, in such cases no refunds provided to exporters. In some cases, IGST refunds are held up due to this reason. Whereas, the customs allowed refunds on the basis of PAN whenever the exporters did not mention the GSTIN.
Inland Container Depots Issues
Exporters refunds were delaying from several of the Inland Container Depots (ICDs) as the information submitted by the shipping company could not be connected to the customs information, this is one of the reasons.
Recommended: GST Refund Procedure Under Goods and Services Tax India
