IGST
refunds on exports-extension in SB005 alternate mechanism- reg.
Considering
that the entire country is facing unprecedented challenges due to the COVID 19
pandemic , and that the exporters are facing genuine hard-ships, many Circulars
had been issued by Ministries for trade facilitation and as interim measures to
help trade adapt and acclimatize to changing requirements in the GST era. Many
representations had been received due to numerous Shipping Bills having invoice
mismatches between the GST returns data and the customs data presented along
with the Shipping Bills resulting in SB005 error. This error leads to blocking
of the IGST refund disbursal, which is otherwise fully automated, except for
the refund scroll generation.
Considering
that the entire country is facing unprecedented challenges due to the COVID 19
pandemic, and that the exporters are facing genuine hard-ships due to the SB005
errors, it has now been decided to extend the facility of SB005 error
correction in the Customs EDI system for Shipping Bills with date upto
31.12.2019.
1. Central
Board of Indirect Taxes & Customs vide Circular No.22/2020-Customs
dated 21.04.2020 states:
Kind
reference is invited to Board`s Circulars 08/2018- Cus dt 23.03.2018, 15/2018-
Cus dt 06.06.2018, 22/2018-Cus dt 18.07.2018, 40/2018-Cus dt 24.10.2018 and
26/2019-Cus dt 27.08.2019 on the above subject of SB005 error resolution.
2.
The above Board circulars have been issued in the spirit of trade facilitation
and as interim measures to help trade adapt and acclimatize to changing
requirements in the GST era. However, representations have been received till
today on the same subject issue. There are still numerous Shipping Bills having
invoice mismatches between the GST returns data and the customs data presented
along with the Shipping Bills resulting in SB005 error. This results in
blocking of the IGST refund disbursal, which is otherwise fully automated,
except for the refund scroll generation.
3.
The matter has been re-examined. Considering that the entire country is facing
unprecedented challenges due to the COVID 19 pandemic, and that the exporters
are facing genuine hard-ships due to the SB005 errors, it has now been decided
to extend the facility of SB005 error correction in the Customs EDI system for
Shipping Bills with date upto 31.12.2019.
4.
All members of the trade, exporters, shipping lines, customs brokers are duly
advised again to make efforts to understand the problems due to mismatch of
invoices resulting in SB005 error, and to invest time and due precautions for
preventing such error in the future.
5.
Suitable Trade Notice/ Standing order may please be issued to guide the trade
and industry. Difficulty, if any, faced in implementation may be brought to the
notice of Board immediately.
DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER
THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE
LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A
KNOWLEDGE SHARING INITIATIVE.
THE
AUTHOR – CS DEEPAK SETH (ASSOCIATE PARTNER AT HELPINGHANDS PROFESSIONALS LLP) AND CAN
BE REACHED AT CONTACTHHPRO@GMAIL.COM
OR 9910248911.
extension in SB005 alternate mechanism- reg.){kind=link}
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