Quick Summary
The CBIC has issuedInstruction No. 04/2022-GST dated November 28, 2022regarding the Manner of processing and sanction of IGST refunds, withheld in terms of clause (c) of sub-rule (4) of rule 96, transmitted to the jurisdictional GST authorities under sub-rule (5A) of rule 96 of the Central Goods and Service Tax Rules, 2017 (the CGST Rules). Attention is invited to Standard Operating Procedures (SOPs) for verification of risky exporters and their suppliers dated January 23, 2020 issued to
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FAQ :
The CBIC has issued Instruction No. 04/2022-GST detailing the process for handling IGST refunds that were withheld for "risky exporters" under rule 96(5A).
The Directorate General of Analytics and Risk Management (DGARM) identifies exporters based on data analysis and risk parameters, including the verification of their credentials and Input Tax Credit (ITC) availment.
DGARM places an all-India alert on the exporter. This causes their IGST refunds to be withheld, and the refund claim data is transmitted to GSTN for processing by the jurisdictional GST authorities.
Jurisdictional proper officers process these refunds similarly to other RFD-01 claims, verifying the exporter's genuineness and ITC usage. They must exercise due diligence and may conduct physical verification.
No, deficiency memos (Form GST RFD-03) cannot be issued for these system-generated refund claims as they are auto-acknowledged.
The Standard Operating Procedures (SOPs) dated January 23, 2020, and May 20, 2020, concerning the verification of risky exporters and their suppliers, have been superseded.
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