Central Board of Indirect Taxes and Customs (CBIC) had earlier issued various circulars and extended the period of Alternate Mechanism to resolve error SB005 (Invoice No. & Date Mismatch) to enable the exporters to claim IGST refund by handling the mismatch between GST returns and shipping bills.
When the exporters declare and remit IGST on export supplies in their Form GSTR – 3B and the same matches with the liability declared in Form GSTR-1, the data will be transmitted to the Customs system wherein the GST return data is matched with the shipping bill data. If the matching is successful, ICES processes the claim for refund and the relevant amount of IGST paid with respect to each shipping bill or bill of export is electronically credited to the exporter’s bank account as registered with the Customs authorities. If there is any mismatch, the refund would not be sanctioned.
The most common issue is SB005, which occurs due to mismatch of invoice number as declared in the Invoice Table in the SB and that declared in the GSTR 1 for the same supply. This can happen due to:
a) Typographical mistake while entering data in GSTR 1 or the SB.
b) The exporter uses two sets of invoices, one invoice for GST and another invoice for exports resulting in mismatch of invoice numbers
Such corrections were earlier allowed in shipping bills up to 31 December 2019.
Based on several representations from the Trade to extend the Officer Interface to resolve the genuine error committed during data entry, CBIC has been decided as a measure of trade facilitation to keep the Officer Interface available ‘on permanent basis’ to resolve such errors on payment of specified fee by the exporter.
The exporter may avail the facility of correction of invoice mis-match errors (error code SB-005) in respect of all past shipping bills, irrespective of its date of filling, by following the procedure as provided in the Circulars, subject to a payment of INR 1000/- as fee towards such rendering of service by Customs Officers for correlation and verification of the claim.
To this effect CBIC vide Customs Notification No.17/2001-Customs. (N.T.) dated 17 February 2021 has issued ‘Levy of Fees (Customs Documents) Amendment Regulations 2021’ as an amendment to the earlier regulations the Levy of Fees (Customs Documents) Amendment Regulations, 2017 introduced by Custom Notification No.36/2017-Customs (N.T.) dated 11 April 2017.
This facility enables to handle mismatch between shipping bill and GST returns in customs automated system with a charge of INR 1000/- Trade is requested to take a note of this & follow the correct data entry in GST returns.
[Customs-notification No.17/2001-Customs. (N.T.) dated 17 February 2021 read with Circular No. 05/20210 Dated 17 February 2021]
Subscribe to receive the latest BDO News and Insights
Please fill out the following form to access the download.