MANU/CUCR/0016/2019

Ministry : Ministry of Finance

Department/Board : CBEC Customs

Circular No. : 16/2019-Customs

Date : 17.06.2019

Notification/ Circulars Referred : 15/2017-Cus dated 09.10.2017 MANU/CUST/0091/2017

Citing Reference:
15/2017-Cus dated 09.10.2017 MANU/CUST/0091/2017  Referred

To

All Principal Chief Commissioners/Chief Commissioners of
Customs/Customs (Preventive)/Customs & Central Tax,
All Director Generals under CBIC,
All Principal Commissioners/Commissioners of
Customs/Customs (Preventive)/Customs & Central Tax.

IGST refunds-mechanism to verify the IGST payments for goods exported out of India in certain cases

The procedure for claiming IGST refunds is fully automated as provided under Instruction 15/2017-Cus dated 09.10.2017. It has come to the notice of the Board that instances of availment of IGST refund using fraudulent ITC claims by some exporters have been observed by various authorities. Exporters have availed ITC on the basis of ineligible documents or fraudulently and utilized that credit for payment of IGST on goods exported out of India. It has also been observed in several cases that there is huge variation between the FOB value declared in the Shipping Bill and the Taxable value declared in GST Return apparently to effect higher IGST pay out leading to encashment of credit.

2. In view of above, it has been decided to verify the IGST payments through the respective GST field formations. The procedure specified in the instruction 15/2017-Cus dated 09.10.2017 stand modified to the extent as under:

A. Identification of Suspicious cases: DG (Systems) shall work out the suitable criteria to identify risky exporters at the national level and forward the list of said risky exporters to Risk Management Centre for Customs (RMCC) and respective Chief Commissioners of Central Tax. DG (Systems) shall inform the respective Chief Commissioner of Central Tax about the past IGST refunds granted to such risky exporters (along with details of bank accounts in which such refund has been disbursed).

B. Inserting Alert in the System: RMCC shall insert alerts for all such risky exporters and make 100% examination mandatory of export consignments relating to those........