Standard Operating Procedure for Exporter Refund Verification – Circular No. 131/1/2020-GST
<p>Circular No. 131/1/2020-GST addresses the growing issue of fraudulent claims of Integrated Goods and Services Tax (IGST) refunds on exports. The circular outlines the steps to be followed for verifying such claims, focusing on exporters whose refunds are held in abeyance pending further scrutiny. These measures are designed to ensure that only genuine exporters benefit from the refund process.</p><p><strong>Key Highlights:</strong></p><ul><li><strong>Risk Mitigation Measures</strong>: The circular acknowledges that fraudulent exporters have been found claiming ITC based on fake invoices and paying IGST using ineligible credits. To counter this, the Board has implemented stringent risk-based checks powered by data analytics and artificial intelligence tools, focusing on a small fraction of exporters.</li><li><strong>Verification Process for Exporters</strong>: Exporters whose refunds have been held back must submit detailed information for verification. The information includes GST-related data, financial details, export transactions, and even physical premises documents such as rent agreements and utility bills.</li><li><strong>Timelines for Verification</strong>: Exporters are required to submit the necessary information to the jurisdictional CGST authorities, who must complete the verification within 14 working days. If the verification is delayed, exporters have the option to escalate the matter to the jurisdictional Pr. Chief Commissioner.</li><li><strong>Grievance Redressal Mechanism</strong>: If any refund is pending for more than a month, exporters can register their grievance on the CBIC portal. A dedicated committee will examine and resolve such cases.</li><li><strong>Transparency and Speed</strong>: The circular aims to expedite the process and avoid unnecessary hardship for genuine exporters. By providing detailed instructions and timelines, the government ensures that exporters' refunds are processed in a timely manner while preventing misuse of the system.</li></ul><p>This SOP is essential for improving the integrity of the IGST refund process, ensuring that legitimate exporters are not hindered by fraudulent activities in the system</p><p><a href="https://cms.plasament.com/storage/chirag-singla/circular-cgst-131-new.pdf">circular-cgst-131-new</a><br> </p>