Chatroom: EGM proof required under IGST Rate Notification 41/2017

Rajagopalan answers readers' SME queries related to GST, export and import matters

We had imported certain goods and cleared them from the Customs after payment of duty. The goods were damaged due to heavy rain before they could reach the factory. Now, our insurance policy is only for 110 per cent of the CIF value of the goods. Is there any way to get the duty back from the Customs?

Yes. You can get the refund of the Customs duty paid in accordance with Section 26A of the Customs Act, 1962, after fulfilling the conditions stipulated therein.  

We are manufacturers. We had exported our goods through a merchant exporter on payment of 0.1 per cent IGST under the notification 41/2017-Integrated Tax (Rate) dated October 23, 2017. We had submitted to our jurisdictional authorities the shipping bill showing our name and address as supporting manufacturer, our GSTIN and our GST invoice number and date. Now, our GST authorities are saying that we must submit a copy of the EGM filed by the shipping company also. Is this correct?

Condition no. (ix) of the said notification 41/2017  says that ‘when  goods  have  been  exported,  the  registered  recipient  shall  provide  copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number(GSTIN) and tax invoice of the registered supplier along with  proof  of  export  general  manifest or  export  report having  been  filed  to the registered supplier as well as jurisdictional tax officer of such supplier’. So, what is required to be submitted is the ‘proof of having filed the EGM’ and the obligation to submit it is that of the recipient. Of course, if any of the conditions of the notification is not fulfilled, the exemption ceases to be available. So, in your own interest, you may explain the notification condition to the merchant exporter and get the copy of the EGM showing the relevant shipping bill no. and date.

In one of our shipments, by mistake we had billed the overseas buyer at $11 per kg. instead of $10 per Kg. The GST invoice and shipping bill are wrongly made out at US$ 11 per kg. The export has already taken place and we have received payment at US$ 10 per kg. Now, our bank says that in the EDPMS, the balance amount at US$ 1 per kg. is outstanding. How to rectify this mistake?

You may approach the Customs for amendment of the shipping bill in accordance with Section 149 of the Customs Act, 1962 on the basis of the purchase order at US$ 10 per kg. received through email before the shipment. On the basis of the amendment, you may approach the bank for marking off the EDPMS entry. You may issue a commercial credit note to the buyer to square off the outstanding in the account books. You may issue a credit note as per Section 34 of the CGST Act, 2017 read with Rule 53 of the CGST Rules, 2017 and make sure the same is reported in your next GSTR-1 return.

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