Refund of unutilized input tax credit – Discrepancy Circular

Clarification regarding Refund of unutilized input tax credit Discrepancy provided vide Circular  no. 37/11/2018-GST dt.15th march 18. Circular reads as below:

9. Discrepancy between values of GST invoice and shipping bill/bill of export: It has been brought to the
notice of the Board that in certain cases, where the refund of unutilized input tax credit on account of
export of goods is claimed and the value declared in the tax invoice is different from the export value
declared in the corresponding shipping bill under the Customs Act, refund claims are not being processed.

The matter has been examined and it is clarified that the zero rated supply of goods is effected under
the provisions of the GST laws. An exporter, at the time of supply of goods declares that the goods
are for export and the same is done under an invoice issued under rule 46 of the CGST Rules.

The value recorded in the GST invoice should normally be the transaction value as determined under
section 15 of the CGST Act read with the rules made thereunder.  The same transaction value should
normally be recorded in the corresponding shipping bill / bill of export.

9.1 During the processing of the refund claim, the value of the goods declared in the GST invoice
and the value in the corresponding shipping bill / bill of export should be examined and the lower
of the two values should be sanctioned as refund.