Classification of Risky exporters under GST Act w.r.t IGST Refund

B Sathyanarayanan , Last updated: 13 December 2022  
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As per the SOP issued by DGRM and the SOP issued in the year 20.05.2020, it is instructed to Custom and GST field Formations for the classification of risky exporters under rule 96.

The DGRAM has issued an advisory for classifying risky exporters on their previous background and the data should be sent to the Risk management centre of customs for putting the alert in system. The custom field formations we required to conduct a detailed examination of the export of goods and identify the exporters. The jurisdictional GST field formations would verify the credibility of exporters and should send a supply report and on basis of these DGRAM will take a discussion to give Non-Objection certificate.

While applying Rule 96 of CGSTACT 2017 IGST refund will be issued after the data analysis of Exporters and the Fulfilment of ITC.

Classification of Risky exporters under GST Act w.r.t IGST Refund

On the filing of RFD01 for IGST Refunds, the system will allow giving RFD02 acknowledgment on the basis of transmission of data from DGRAM.

So the DGRAM has issued an alert to system managers for the earlier refund of the application on the basis of an alert in the ICES portal.

The genuineness will be verified, on the basis of DGRAM report and the avaliment of ITC will be ensured before issuing a Refund. The DGRAM will place the all-India Risky exporter's list in Custom EDI. On the basis of the negative list placed in EDLI, the shipping bill filed will not be considered for refund and on basis of past records, it will place them in the negative list.

The next step is the verification of Refunds filed under RFD 01 under the back office system and an officer will be advised to block the refund on the basis of the GSTRAM report. So the data will be shared with the assessing officer under CGST or SGST or UGST.

 

Once the system flags off the negative list the officer will not wait and issue provisional refunds, No Defiance Memo will be an issue.

On the final part once everything is ok the officer will pass a speaking order and the claim will be uploaded and the refund order under RFD 06 will be issued under section 54 under the CGST act.

The GST officer will have to give their opinion on the basis of the DGRAM report to Customs filed formations.

 

This system will be helpful to importers and exporters who are all registered with custom AEO and LEO, especially under T2 and T3 in AEO.

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B Sathyanarayanan
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Category GST   Report

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