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Issues in Export Refunds - Top Reasons Why Your Invoice data did not Transmit to ICEGate

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Issues in Export Refunds - Top Reasons Why Your Invoice data did not Transmit to ICEGate


ICEGate or Indian Customs Electronic Commerce/Electronic Data Interchange (EC/EDI) Gateway is the provider of e-filing services for the importers, exporters and other trading partners in India. With ICEGate, the user can make E-payments, Track Document status at Customs EDI, Register for IPR, Verify IE Code, etc. making it an essential tool for traders and exporters in India.

The ICEGate portal facilitates the transmission of the export refund directly to the user’s bank account.

The Export Refund by ICEGate is dependent on few factors. Before claiming a refund, the taxpayers should ensure the following conditions are met:
  • GSTR-3B for the month has been filed
  • Table 6A (Refund on Export) of GSTR-1 has been filed
  • Shipping Bill details are correctly provided in Table 6A of GSTR-1.
  • The IGST amount mentioned in GSTR-3B is equal to the IGST mentioned in Table 6A of GSTR-1.
Consequence of unfulfilled conditions:
Before initiating the refund procedure, supplier’s filing data is given a thorough check to assure the taxpayer has filed his/her returns without any errors. And for any faulty filing or mismatch in return forms, the ICEGate officials can delay or even reject the exporter’s fund transfer. But before doing so, a notification is sent to the exporter by GSTN, informing him/her about such difference. So that the exporter can make necessary corrections in subsequent returns and get the refunds.

Export Refund through ICEGate portal
1. Once the taxpayer files the form GSTR-1 and GSTR-3B, GSTN examines the content of Table 6A of GSTR-1.
2. Shipping bill details like shipping bill number, date and port code are transferred from GSTN to the ICEGate portal.
3. The ICEGate portal first checks the correctness of shipping bill details and then examines the details between the two forms and verifies if the amount has actually been paid.
4. The outcome of the verification procedure can lead to 2 scenarios,
a. Transmission of export refund: If all the conditions are met and IGST has been paid, the refund process is initiated and the taxpayer receives his/her refund within 5-6 working days.
b. Non-transmission of export refund: ICEGate officials delay or hold the export refund on the grounds of one or more reasons as given below:
• Faulty entry of Shipping Bill Number, Shipping Bill Date or Port Code while uploading invoices in GSTR-1.
• The taxpayer does not mention the invoice type as exports with payment of duty while uploading invoices in GSTR-1.
• Taxpayer failed to indicate the applicable IGST amount in Table 3.1b in GSTR-3B.
• The taxpayer has paid an insufficient amount in GSTR-3B, contrasting to his/her declaration in form GSTR-1.

Due to above reasons the invoice does not get transmitted to ICE GATE and taxpayer does not get refund.

The Delay or Holding of export refunds is temporary as the taxpayer can rectify the given mistakes in subsequent returns (through amendments) and claim for his/her refund to be processed.

IRIS GST is a registered GSP under the GST regime and provider of premium quality GST compliance tools in India. With tools like IRIS Sapphire (invoice management) and IRIS Topaz (Eway Bill management), IRIS GST aims to provide a hassle-free GST compliance experience across the nation.

For any queries or to book our free demo, mail us at support@irisgst.com

About Bhavika Chothani

Bhavika

Bhavika is Customer Success Manager for IRISGST at IRIS Business. An ICWA, Bhavika comes with approx 9 years of experience in Compliance Reporting. She has been handling clients in Indian Markets since the GST mandate and has profound expertise in product functioning, GST filing and issue resolution. During leisure time, she loves traveling and likes to explore new places.

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