The Central Board of Indirect Taxes and Customs (CBIC) releasing a circular that has informed about an important decision. The government has extended the alternate mechanism facility for exporters to claim IGST refunds, in cases of mismatch in invoice number in GST returns and shipping bill filed with customs till December 31, 2019.
Few important points of this Central Board of Indirect Taxes and Customs (CBIC) Circular
1. Considering that the entire country is facing unprecedented challenges due to the COVID-19 pandemic and that the exporters are facing genuine hardships due to the “SB005 errors”, it has been decided to extend the facility of SB005 error correction in the Customs EDI (Electronic Data Interchange) system for shipping bills with date up to 31st December 2019.
2. SB005 is an error shown for mismatch between invoice number in shipping bill and in GSTR-1, due to which the refund gets stuck.
Initially, this mechanism was only available for shipping bills filed till 31st December 2017. But, this has been extended time and again through a number of circulars and now with the recent circular, it is extended for shipping bills filed till 31st December 2019.
3. CBIC said that a trade and business friendly measure taken by it through a circular requiring taxpayers to give HSN/SAC code along with the refund application, is being misconstrued by as troubling the taxpayers in Covid-19 like situation.
It said the provision was approved by the GST Council to facilitate early ITC refunds and to ensure that the wrong ITC claims are not processed in the absence of relevant information.
4. It was noticed that a lot of time is spent in verification of whether the credit was availed on services and/or Capital Goods in certain categories for the refund claims.