The IGST refund would not be processed if it fails any validation at the level of either GSTN or Customs system. Validation errors occur due to various deficiencies.
It has been observed that a number of records have not been transmitted by GSTN to the Customs system which could be on account of various errors that have occurred in the validation carried out by the GSTN. It is understood that cases, where such validations fail, are on account of:
1. Both GSTR 1/Table 6A and GSTR 3B have not been filed for that supply or there are missing invoices in GSTR 1 for that supply.
2. Invoices provided in Table 6A of GSTR 1/1E are incomplete, e.g., details of shipping bill and port number/code are not mentioned.
3. IGST paid under Table 3.1(b) of GSTR 3B being less than total IGST claimed in Table 6A of GSTR 1/1E of the same period. The claim cannot be more than that of the amount of IGST paid.
GSTN is reportedly working on a feedback/message system so as to inform the exporters about such failed validations. At present, the Customs system does not have any information about the reasons for which validation at GSTN has failed. However, for all those records which have been successfully transmitted to the Customs system, the report can be generated at the end of field officers. Even the exporter has the option to check the GST validation status for his shipping bills in his ICEGATE website log-in for all records transmitted by GSTN.
In cases where the exporter has filed correct information in the GST returns and it gets successfully validated by the GSTN, it is thereafter transmitted electronically to the Customs system wherein the GST return data is matched with the shipping bill data. If the matching is successful, ICES processes the claim for refund and the relevant amount of IGST paid with respect to each shipping bill or bill of export is electronically credited to the exporter’s bank account as registered with the Customs authorities. But, wherever the matching fails on account of some error, the refund does not get sanctioned. The matching between the two data sources is done at the invoice level and any mismatch of the laid down parameters results in one or more of the following errors/responses:
|Invalid SB details
|EGM not filed
|Record already received and validated
|Invalid invoice number
|Gateway EGM not available
|PFMS VALIDATION ERROR
|Bank Account details of the exporter not validated in PFMS