SME Chatroom: 'RoSCTL claims must be filed within the stipulated deadlines'

Q. We did not file our RoSCTL applications for exports made in 2019-20 within the one-year time period because we were placed in the list of “risky exporters” till October 2020 when the Icegate system did not allow our IGST claims and the DGFT system did not allow us to file the RoSCTL claims. Now, our IGST claims are released but the DGFT system does not accept our RoSCTL applications because they are time-barred. What is the way for us to get our RoSCTL for exports made during 2019-20?

Para 4.95(k) of HBP says that for shipping bills with LEO date from March 7, 2019 to December 31, 2019, the last date for filing online RoSCTL claims will be December 31, 2020, and for shipping bills with LEO date on or after January 1, 2020, the last date for filing online RoSCTL applications will be within one year from the date of LEO. It also says that after these deadlines, no application can be filed and the shipping bills would be time-barred. There is no provision of late cut under RoSCTL.

So, you may represent the matter to the DGFT, explaining the circumstances that led to the delay in filing your claims. If the government is not ready to let you file the claims, you may approach the courts on the grounds that your substantial benefits should not be denied due to procedural infractions like delays in filing the claims.
 
Q. Based on an order from a Hong Kong party, we consigned the goods to a party in Canada. We billed the Hong Kong party, who has paid part of the amount but now says that the balance will be paid by the Canada party. Can we receive export proceeds from Canada against invoices raised on the Hong Kong party?

Para A3(v) of RBI Master Direction no.16/2015-16 dated January 1, 2016 (as amended) allows receipt of payments for exports from a third party, subject to fulfillment of certain conditions. It appears you are not in compliance with one of the conditions that the exporter should declare the third party remittance in the Export Declaration Form. So, you may seek waiver of that condition from the jurisdictional RBI office through your bankers and upon grant of requisite waiver, regularise receipt of money from the Canadian party.
 
Q. We are entering into a contract with a foreign company, whose technicians will visit our facilities to provide certain services. The foreign company apprehends that upon their arrival, the technicians will be quarantined due to Covid-19 and so, wants us to pay/reimburse for the forced idle time of the technicians and also their actual expenses such as hotel rent, food etc. Can we agree to a lump-sum payment or opt for actual reimbursements?

It is uncertain whether the technicians will be quarantined and so, it is better that you agree for payment of hotel bills for stay, food, etc. as per actuals. For the idle time, if any, you can agree for compensation on a per-day basis.

Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in