Order date – 28 November 2022

Key Pointers –

• Customs field formations and further, the jurisdictional CGST formations were required to conduct a detailed examination of the export goods of such identified exporters. On receipt of the verification report from CGST formations, DGARM was required to take a decision for issuance of NOC or otherwise.
• However, rule 96(4)(c) of the CGST Rules, 2017 has been amended retrospectively w.e.f. 01.07.2017 to provide for withholding of IGST refund in cases where the verification of credentials of the exporter, identified on the basis of data analytics including the availment of ITC by the exporter is considered essential before grant of refund
• Sub-rule (5A) has been inserted in rule 96 to provide for transmission of IGST refunds, withheld in terms of provisions of clause (c) of sub-rule (4) of rule 96 of the CGST Rules, as system generated refund in Form GST RFD-01 and to provide that the said system generated form shall be deemed to be the application for refund in such cases and such application for refund shall be deemed to have been filed on the date of such transmission on the portal. 
• Such refund claims will be made available to the jurisdictional proper officer on back office system under the category “Any other (GST paid on export of goods)" with the remarks "Refund of IGST paid on export of goods (Refund not processed by ICEGATE)".
• As these refund claims have been generated by the system on the basis of Shipping Bills/ Bills of Export filed by the exporter, these claims would be auto-acknowledged by the system and no Deficiency Memo in Form GST RFD-03 can be issued against such system generated Form GST RFD-01 refund claims.
• The proper officer shall ascertain the genuineness of the exporter and pass a detailed speaking order in respect of the refund claim and shall duly upload the same along with the refund sanction order in Form GST RFD-06 on the portal in terms of Instruction No. 03/2022-GST dated 14.06.2022. The officer will also follow the timelines for processing of the refund claim in terms of provisions of sub-section (7) of section 54 of the CGST Act.
• In case where the detailed investigation is required, the proper officer shall provide feedback on common portal as to whether the alert against the exporter need to be continued or removed.
• GSTN shall transmit the data regarding the outcome of processing of refund by the proper officer, along with the feedback received from the proper officer on the requirement of removal or continuation of alert, to DGARM for necessary action for removal or continuation of alert.
• The Zonal Principal Chief Commissioners/ Chief Commissioners are requested to closely monitor the progress of disposal of such transmitted refund claims to ensure that due verification has been conducted before sanction and the refunds have been processed in a timely manner.
• In view of the above, the SOPS dated 23.01.2020 and 20.05.2020 prescribing the procedure to be followed for verification of the risky exporters and their suppliers, are hereby superseded.