Circular No.: 131/1/2020-GST
Date of Circular: 23rd January 2020
Relevant Sections and Rules:
- Central GST Act, 2017: General provisions on refund, registration, verification
- Integrated GST Act, 2017: Section 16 – Zero-rated supply (exports)
- Relevant Procedure: SOP for verification of risky exporters and IGST refunds
Summary of Circular:
This circular introduces a Standard Operating Procedure (SOP) to curb fraudulent claims of IGST refund on exports involving fake ITC invoices and non-existent exporters.
- Risk-based Verification and Scroll Suspension:
Due to misuse of refund claims based on ineligible ITC, the Board now uses AI-driven risk parameters to select exporters for pre-refund verification.- Refund scrolls are kept in abeyance pending field report.
- Export consignments from such flagged exporters undergo 100% examination at ports.
- Exporter Action and Information Submission (Annexure A):
Exporters whose refunds are withheld must submit detailed information, including:- GST returns and ITC mismatch reports
- E-way bills, refund claims
- Financial data (bank statements, KYC, creditors/debtors, BRCs/FIRCs)
- Legal and operational documents (PAN, IEC, rent agreement, ITR depreciation schedules)
- All details to be submitted to the jurisdictional CGST authority.
- Timelines for Verification:
- Jurisdictional CGST office must complete verification within 14 working days.
- If not completed, the officer must escalate to a nodal cell under the Chief Commissioner.
- Chief Commissioner must ensure completion within 7 more working days.
- Grievance Redressal:
- If refund is delayed beyond one month, the exporter may raise a complaint at
www.cbic.gov.in/issue. - A high-level CBIC committee headed by Member (GST) will resolve such grievances.
- If refund is delayed beyond one month, the exporter may raise a complaint at
- Administrative Coordination:
- Exporters may also escalate to the Chief Commissioner via email (emails listed in Annexure B for all zones).
Source: Circular No.: 131/1/2020-GST