Meaning

Export with payment of IGST (Integrated Goods and Services Tax) refers to the process where an exporter exports goods outside India after paying IGST on the exported goods. Integrated Goods and Services Tax (IGST) is a component of GST applied to inter-state transactions and imports/exports of goods and services. When exporting with payment of IGST, the exporter initially pays IGST on the goods or services being exported. Subsequently, the exporter gets the refund of the said amount once he files his GST Returns.

Exporters may choose the IGST payment route for several reasons:

• Immediate Refund: The refund process for IGST is quicker as the Exporter gets the refund automatically in his bank account once the exporter files his GST Returns.
• No Requirement for LUT/Bond: Exporters do not need to furnish an LUT or Bond, which can save time and administrative effort.
• Seamless: Unlike Refund of ITC on Export of Goods & Services without Payment of Tax which involves a lot of documentation, filling of refund application and department work. This refund gets credited with no extra efforts.

Process

1. File GST Returns (GSTR-1 and GSTR-3B):

• The exporter must file GSTR-1, which includes details of all outward supplies. In this return, ensure that the exporter reports the Shipping details such as Shipping Bill Number, Shipping Bill date, Port Code along with invoice details otherwise the data will not get transmitted to the ICEGATE Portal and the refund will not be credited.
• GSTR-3B, a summary return, must also be filed, where the IGST paid on exports is reflected.

2. Generate a Shipping Bill:

• The shipping bill is a vital document for exports. When exporting with payment of IGST, ensure that the shipping bill clearly mentions the payment of IGST and the associated invoice number. If any of the details gets mismatch with GST Returns, then a shipping bill error will arise, and the refund will not be credited.

3. IGST must be paid:

• The exporter must pay the applicable IGST on the export of goods or services. This payment is made along with the regular GST payments through GSTR 3B.

4. Aadhar Authentication:

• Exporter must authenticate his Aadhar details in the GST Portal otherwise the invoices will not get transmitted to ICEGATE and the refund will not be credited.

5. Automatic Refund of IGST:

• After the goods are exported and the shipping bill is filed, the customs authorities will process the refund of the paid IGST. This refund is typically processed automatically by the GST portal, provided all returns (GSTR-1 and GSTR-3B) are correctly filed and matched with the shipping bill data.

6. Track the Refund Status:

• Exporters can track the status of their IGST refund through the ICEGATE Portal. The refund is usually credited to the exporter’s bank account linked with the ICEGATE Portal.

ICEGATE

•  ICEGATE is an online portal operated by the Indian Customs and Central Excise Departments. It serves as a gateway for electronic filing and management of various customs and excise-related processes.

Key functions include:

•  Customs Clearance: Streamlining the process for customs clearance of goods.
•  Identifying Errors: ICEGATE plays a crucial role in identifying and reflecting errors in shipping bills.
• Bank Account: Refund in case of export with payment of IGST gets credited in the bank account linked to ICEGATE.
• Document Management: Handling and submission of documents like bills of entry, shipping bills, and more.
•  Status Tracking: Monitoring the status of shipments, clearances, and other transactions.
• PFMS Errors: It helps in identifying the PFMS Errors due to which the refund gets stuck at ICEGATE.

Challenges Faced

• Shipping details pertaining to one month only can be generated through ICEGATE.
•  If any amendment was made in GSTR-1 relating to any shipping bill it was not possible to identify the month in which the amendment was made so easily, we used to search returns of each month to find the month of amendment by logging in the GST Portal.
•  EGM Details relating to Shipping Bill is found on a one-to-one basis. We used to derive the information from the copy of respective shipping bill using ICEGATE.
•  Whether the Shipping Bills are validated or not pertaining to one month and one location code can be ascertained at a time in ICEGATE.
•  Shipping Bill details along with any errors i.e. (SB000, SB001, SB002, SB003, SB004, SB005, SB006) were generated on a one-to-one basis consuming hell lot of time.
•  No comparison available between the information provided by the user in GSTR-1 and information reflected in the ICEGATE Portal.
•  Shipping bill errors cannot be found at one place. We need to walk in through the whole website to find errors one at a time.

MY GST Refund Tool

Shipping details pertaining to one year can be generated using MYGST tool.

•  MYGST Refund tool generates a report In which shipping details along with the month in which the amendment was made can be identified.
• EGM Details of every shipping bill is available in the report generated through MYGST Refund tool along with every shipping bill. 
•  Whether the Shipping Bills are validated or not pertaining to one year and every location code can be ascertained at a time.
•  Shipping Bill details along with any errors can be generated in one go on a year-to-year basis by just selecting the period for which the errors are required to be found.
• MYGST Refund tool provides a comparison report between GSTR-1 and ICEGATE which help us to identify the error in GSTR-1 if any, which can be rectified in the next month.
• Using MYGST Refund tool we just need to create an account of the user and just click the button calculate. It will create a report in which all possible errors pertaining to all shipping bills relating to a particular accounting year can be found.

MGR Comments

• Integrating MGR tool into the refund process can be a game-changer for businesses, especially the exporters. It not only simplifies the complex task but also saves a lot of time which is spent on understanding the errors due to which the refund is stuck. This tool is particularly beneficial for those seeking to optimize their time and streamline their processes, providing a swift and accurate way to claim refunds with unmatched efficiency.