Circular No. 149/18/2011-ST, 16th December, 2011
So far Service Tax Refund (STR) was made available to exporters (other than
SEZ Units/Developers) on specified services used for export of goods covered in
Notification 17/2009-ST dated 07.07.2009 (as amended) subject to certain
conditions. In this connection, Honourable Finance Minister, had stated in his
Budget Speech that
“There have been considerable difficulties in the sanction of
refunds, relating to tax paid on services used for export of
goods. I propose to shortly introduce a scheme for the
2
refund of these taxes on the lines of drawback of duties in a
far more simplified and expeditious manner”.
2. Accordingly, Government has proposed to introduce a simplified scheme
for electronic refund of service tax to exporters, on the lines of duty drawback.
With the introduction of this new scheme, exporters now have a choice: either
they can opt for electronic refund through ICES system, which is based on the
‘schedule of rates’ or they can opt for refund on the basis of documents, by
approaching the Central Excise/Service Tax formations.
3. To obtain benefit under the new electronic STR scheme, which is based
on the ‘schedule of rates’, an exporter: (i) should have a bank account and also a
central excise registration or service tax code number and the same should be
registered with Customs ICES 1.5 using ‘Annexure –A’ Form;(ii) should declare
his option to avail STR on the electronic shipping bill while presenting the same
to the proper officer of Customs.
4. In the ‘schedule of rates’, to be notified shortly, rates are specified for
goods of a class or description. An exporter, who wishes to obtain electronic
STR, should express his option by mentioning in the shipping bill,
chapter/subheading number at the first two digits or four digit levels specified in
the schedule of rates, as applicable to the export goods declared in the shipping
bill. This chapter/sub heading number should tally with RITC code mentioned in
the Shipping Bill against the export goods. Eligible refund amount of service tax
paid on the specified services used for export of goods declared in the shipping
bill will be calculated electronically by the ICES system, by applying the rate
specified in the schedule against the said goods, as a percentage of the FOB
value.
5. Exporters who do not like to obtain electronic STR on the basis of
‘schedule of rates’, but wish to opt for claiming STR on the basis of documents,
through the Central Excise/Service Tax field formations should declare
chapter/subheading number as 9801 in the electronic Shipping Bill. Minimum
STR will be Rupees Fifty for an electronic shipping bill. An exporter who wants to
get the chapter/sub heading number amended, for any reason, can get the same
carried out through the ICES service centre by filing an amendment request;
amendment request can also be filed through ICEGATE using Remote EDI
System(RES) software. Exporters can track the status of their refund claim and
details of refund amount through ICEGATE Document Tracking and Touch
Screen Enquiry.
6. STR amount processed under the ICES will be disbursed through the
branch of the authorized bank at each customs location. The STR amount in
respect of individual exporters will be credited directly to the bank account of the
exporter, in the authorized bank branch at a Custom location or to any core
banking enabled banking account of the exporter, in any branch/bank anywhere
in the country (through the NEFT/RTGS). For this purpose, the exporters are
required to register with Customs, the Indian Financial Service Code (IFSC) of
3
the bank branch in which s/he wishes to receive the STR amount, the core
banking enabled account number, bank name and address, using ‘Annexure-A’.
The procedure for registration of bank account is the same as existing procedure
for registration of bank account for receiving drawback amount. Form for
registration of bank account, namely, ‘Annexure-A’ is enclosed to this Circular,
for the convenience of the exporters.
7. Duly filled in ‘Annexure–A’ form enclosed in this Circular (along with selfcertified
photocopy of central excise registration or service tax code number),
should be submitted to the Designated Superintendent in the Customs
Houses/Customs formations, as soon as possible, to get benefit of the electronic
refund scheme. (Merchant Exporters, who require a service tax code, can use
Form A-2 provided in the Notification 17/2009-ST and obtain the same from
jurisdictional central excise or service tax by following the procedure prescribed
in the notification). In respect of exporters who already have their bank accounts
registered for receiving drawback amount, no new/separate account will be
necessary for receiving service tax refund; but they should register their central
excise registration or service tax code number with Customs ICES using
Annexure-A Form, if they wish to opt for electronic STR. An exporter availing
drawback scheme cannot have separate bank accounts for drawback and
service tax refund.
8. A new head of accounts under Major Head “0044- Service Tax” has been
opened, namely 00441082 for booking of consolidated electronic refunds.
9. Chief Commissioners/ Commissioners are requested to cause wide
publicity to the new electronic STR scheme among exporters. Necessary steps
may be taken to disseminate information regarding the salient features of the
new electronic STR scheme to the Industry and Trade Bodies/ Chambers /
Exporters / CHA Associations. In major Custom Houses, special arrangements
may be made to receive the duly filled in ‘Annexure-A’ forms from the exporters.
Systems Managers may make necessary arrangements to verify the Annexure –
A forms and upload the details in the ICES. This circular is also being posted on
the CBEC website, http://www.cbec.gov.in/ and http://www.icegate.gov.in/ for the information
of all stakeholders.
10. Trade Notices/Facility Circulars may be issued by the service tax/central
excise and service tax/customs commissionerates. Hindi version will follow.
Enclosed: Annexure - A Form
Sd/-
(J. M. Kennedy)
Director (TRU)
So far Service Tax Refund (STR) was made available to exporters (other than
SEZ Units/Developers) on specified services used for export of goods covered in
Notification 17/2009-ST dated 07.07.2009 (as amended) subject to certain
conditions. In this connection, Honourable Finance Minister, had stated in his
Budget Speech that
“There have been considerable difficulties in the sanction of
refunds, relating to tax paid on services used for export of
goods. I propose to shortly introduce a scheme for the
2
refund of these taxes on the lines of drawback of duties in a
far more simplified and expeditious manner”.
2. Accordingly, Government has proposed to introduce a simplified scheme
for electronic refund of service tax to exporters, on the lines of duty drawback.
With the introduction of this new scheme, exporters now have a choice: either
they can opt for electronic refund through ICES system, which is based on the
‘schedule of rates’ or they can opt for refund on the basis of documents, by
approaching the Central Excise/Service Tax formations.
3. To obtain benefit under the new electronic STR scheme, which is based
on the ‘schedule of rates’, an exporter: (i) should have a bank account and also a
central excise registration or service tax code number and the same should be
registered with Customs ICES 1.5 using ‘Annexure –A’ Form;(ii) should declare
his option to avail STR on the electronic shipping bill while presenting the same
to the proper officer of Customs.
4. In the ‘schedule of rates’, to be notified shortly, rates are specified for
goods of a class or description. An exporter, who wishes to obtain electronic
STR, should express his option by mentioning in the shipping bill,
chapter/subheading number at the first two digits or four digit levels specified in
the schedule of rates, as applicable to the export goods declared in the shipping
bill. This chapter/sub heading number should tally with RITC code mentioned in
the Shipping Bill against the export goods. Eligible refund amount of service tax
paid on the specified services used for export of goods declared in the shipping
bill will be calculated electronically by the ICES system, by applying the rate
specified in the schedule against the said goods, as a percentage of the FOB
value.
5. Exporters who do not like to obtain electronic STR on the basis of
‘schedule of rates’, but wish to opt for claiming STR on the basis of documents,
through the Central Excise/Service Tax field formations should declare
chapter/subheading number as 9801 in the electronic Shipping Bill. Minimum
STR will be Rupees Fifty for an electronic shipping bill. An exporter who wants to
get the chapter/sub heading number amended, for any reason, can get the same
carried out through the ICES service centre by filing an amendment request;
amendment request can also be filed through ICEGATE using Remote EDI
System(RES) software. Exporters can track the status of their refund claim and
details of refund amount through ICEGATE Document Tracking and Touch
Screen Enquiry.
6. STR amount processed under the ICES will be disbursed through the
branch of the authorized bank at each customs location. The STR amount in
respect of individual exporters will be credited directly to the bank account of the
exporter, in the authorized bank branch at a Custom location or to any core
banking enabled banking account of the exporter, in any branch/bank anywhere
in the country (through the NEFT/RTGS). For this purpose, the exporters are
required to register with Customs, the Indian Financial Service Code (IFSC) of
3
the bank branch in which s/he wishes to receive the STR amount, the core
banking enabled account number, bank name and address, using ‘Annexure-A’.
The procedure for registration of bank account is the same as existing procedure
for registration of bank account for receiving drawback amount. Form for
registration of bank account, namely, ‘Annexure-A’ is enclosed to this Circular,
for the convenience of the exporters.
7. Duly filled in ‘Annexure–A’ form enclosed in this Circular (along with selfcertified
photocopy of central excise registration or service tax code number),
should be submitted to the Designated Superintendent in the Customs
Houses/Customs formations, as soon as possible, to get benefit of the electronic
refund scheme. (Merchant Exporters, who require a service tax code, can use
Form A-2 provided in the Notification 17/2009-ST and obtain the same from
jurisdictional central excise or service tax by following the procedure prescribed
in the notification). In respect of exporters who already have their bank accounts
registered for receiving drawback amount, no new/separate account will be
necessary for receiving service tax refund; but they should register their central
excise registration or service tax code number with Customs ICES using
Annexure-A Form, if they wish to opt for electronic STR. An exporter availing
drawback scheme cannot have separate bank accounts for drawback and
service tax refund.
8. A new head of accounts under Major Head “0044- Service Tax” has been
opened, namely 00441082 for booking of consolidated electronic refunds.
9. Chief Commissioners/ Commissioners are requested to cause wide
publicity to the new electronic STR scheme among exporters. Necessary steps
may be taken to disseminate information regarding the salient features of the
new electronic STR scheme to the Industry and Trade Bodies/ Chambers /
Exporters / CHA Associations. In major Custom Houses, special arrangements
may be made to receive the duly filled in ‘Annexure-A’ forms from the exporters.
Systems Managers may make necessary arrangements to verify the Annexure –
A forms and upload the details in the ICES. This circular is also being posted on
the CBEC website, http://www.cbec.gov.in/ and http://www.icegate.gov.in/ for the information
of all stakeholders.
10. Trade Notices/Facility Circulars may be issued by the service tax/central
excise and service tax/customs commissionerates. Hindi version will follow.
Enclosed: Annexure - A Form
Sd/-
(J. M. Kennedy)
Director (TRU)
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