Home» Circulars» Egm Errors Related To Igst Refund On Exports

Dear Members,   As you are aware,  IGST refunds in many cases  have been delayed  due to matching errors and  limitations in corrective action  to be taken.   Apart from Invoice Mismatch error (SB005),   another major error  category delaying IGST refunds in  ICD’s is related to  non-filing of EGM at the gateway port or information mismatch between local and gateway  EGM’s.   In this regard,  CBEC  has issued circular no 06/2018 dated 16/03/2018 regarding  Refund of IGST on Export-EGM Error related cases.   You will appreciate that filing of  EGM by shipping lines is also a mandatory requirement for processing of refunds apart from S/B, GSTR-3B &  GSTR-1/ 6A.      The Shipping Lines/ agents have been filing EGM electronically for exports from gateway ports, but for cargo from ICD’s,  shipping lines/ Agents filed EGM in manual mode.  Therefore, absence of electronic EGM’s and their integration with local EGM’s has been a hindrance in processing of IGST refunds from ICD’s. To overcome this issue,  following steps are proposed to be undertaken by Jurisdiction officers (ICD’s and gateway ports)/ Shipping lines: Shipping lines have been mandated to include S/B’s  originating from ICD’s while filing gateway EGM’s. In case needful is not done, Shipping lines/ Agents have  been asked to file supplementary  EGMs.   Jurisdictional officers in ICD’s to take  following steps:   Filing of local EGM immediately after cargo leaves the port   Liaising with jurisdictional officer at gateway port for incorporation of  shipping bills pertaining to cargo originating in ICD’s in the EGM’s filed at the  gateway ports  by shipping lines/ agents.   Rectification of errors in local EGM’s, wherever necessary.   The jurisdictional officers at gateway port should monitor the EGM pendency and error reports in ICES.  The officers at the gateway port have to resolve the EGM errors in expeditious manner by asking shipping lines/ agents to file requisite amendments and approving amendments in ICES.   It  has been observed that mismatch of information in local and gateway EGM mainly occurs  because of  incorrect port code, change in container for LCL cargo, incorrect count of containers, LEO after sailing date. The procedure to be followed has been  provided in step by step guide  made available recently by DG Systems.   There is a shared responsibility  of the  officers at ICD’s and gateway ports. They have to ensure swift rectification of erros and effective co-ordination between domestic carriers, who file local EGM’s and shipping lines agents.   Members whose IGST refunds are stuck due to EGM related issues are requested to take note of the  above circular  and steps being taken for error free filing and integration of EGM’s.  The original Circular No. 06/2018-Customs dated 16/03/2018  is available for download using below link- http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2018/circ06-2018cs.pdf   Thanking You,      Yours faithfully,   (S.G. BHARADI) Executive Director CHEMEXCIL