This circular provides a Standard Operating Procedure (SOP) to be followed in cases where IGST refunds on export of goods are kept in abeyance for verification, with the objective of preventing fraudulent refunds while ensuring that genuine exporters are not subjected to undue hardship.

It explains that certain exporters are identified for verification based on risk parameters and data analytics, following detection of cases involving fake invoices and ineligible input tax credit used for claiming IGST refunds. In such cases, refund scrolls are temporarily withheld and export consignments may be subjected to enhanced examination.

To ensure timely resolution, exporters whose refunds are withheld are to be informed promptly and are required to submit prescribed information in the format given in Annexure A to their jurisdictional CGST authorities. The jurisdictional officers are required to complete verification within 14 working days of receipt of the information. Where verification is delayed, the matter may be escalated to the jurisdictional Principal Chief Commissioner or Chief Commissioner for completion within a further period of 7 working days.

The circular also provides a grievance redressal mechanism. If any refund remains pending for more than one month, exporters may lodge a grievance on the CBIC portal, which will be examined by a committee headed by Member (GST), CBIC. The SOP seeks to balance fraud prevention with facilitation of legitimate exports and faster refund processing.