Pending IGST Refunds from Customs – Verify and Clear Your IGST Refund Status

Exporters in India usually have one universal problem – pending IGST refunds from Customs. Delay in refund clearing affects working capital and subjects exporters to unnecessary compliance hassles. At Afleo Group, our expertise is in determining the reason for refund bottlenecks, correcting mismatches and helping exporters receive their rightful refunds promptly and easily.

If your IGST refund status shows “Pending” or “Scroll Failed,” you’ve come to the right place. Here, we’ll explain the reasons behind these issues and guide you on how to resolve them quickly and efficiently to ensure your refund is processed without delays.

What is IGST Refund?

Integrated Goods and Services Tax (IGST) is charged on inter-state supplies, such as exports of services and goods. Because exports are considered to be zero-rated supplies, exporters can obtain a refund of IGST charged on goods exported or claim input tax credit (ITC) on the inputs used in exports.

Exporters have two choices under GST:

1. Export goods after paying IGST and claim a refund of the paid amount.
2. Export on payment of IGST under a Letter of Undertaking (LUT) and claim ITC refund on inputs.

For the first scenario, refund claims are prepaid from the Customs system using data matching between shipping bills and GST returns (GSTR-1 and GSTR-3B).

Why IGST Refunds Are Delayed or Remain Pending

Though the process is automated, refunds get held up or go pending because of technical mismatches or procedural faults. The usual reasons are:

• Mismatch between the shipping bill information and the GST return details.
• Incomplete or inaccurate EGM (Export General Manifest) filing by the shipping company.
• Improper or inoperative bank account information associated with PFMS (Public Financial Management System).
• Improper or non-filing of GSTR-1 or GSTR-3B returns.
• Amendments are not being updated in the Customs system upon invoice or shipping bill modifications.

How to Check Your IGST Refund Status

It is quite simple to check your refund status online from the ICEGATE portal. Here’s how:

Step 1: Go to the official website of ICEGATE.

Step 2: Log in with your registered login credentials or PAN.

Step 3: Go to Services > Refunds > Track Refund Status.

Step 4: Fill in the Shipping Bill number, Port code, or Date range.

Step 5: See the current refund processing stage reflected on the screen.

IGST Refund Status Stages Explained

When you verify the status, you can get one of a number of status codes. Here’s their meaning:

• SB000 – Successfully processed: Refund has been approved by Customs and will be credited within a short while.
• SB001 – Invalid invoice details: Invoice information in GSTR-1 and shipping bill does not match.
• SB005 – Invalid GSTIN mismatch: GSTIN mismatch between GST returns and shipping bill information.
• PFMS – Bank account validation pending: PFMS has failed to verify your bank account for refund credit.
• Scroll generated / scroll credit failed: Refund approved, but credit to the bank account has failed because of account validation or technical reasons.

Common Issues Behind Pending IGST Refunds

Data Mismatch Between GST and Customs Records

One of the most common problems stems from inconsistencies between the invoice details uploaded in GSTR-1 and the shipping bill details. Even a small inconsistency in the invoice number, date, or tax value can halt refund processing.

Shipping Bill Errors or Amendments Not Reflecting

If your shipping bill has been corrected or modified after export, the modifications might not be reflected in the Customs system, leading to a delay in refunds.

EGM (Export General Manifest) Not Filed Correctly

The shipping line or CHA should file the EGM when the vessel departs India. Without an EGM or an incorrect EGM, the export is treated as incomplete and prevents the refund processing.

PFMS (Public Financial Management System) Problems in Bank Verification

PFMS is used by Customs to verify exporter bank accounts. Incorrect IFSC codes, dormant accounts, or incorrect names may lead to payment failure.

(Know more about IFSC Code Registration)

Delays in Scroll Generation or Processing

Although all data may be accurate, refunds may be delayed if the scroll generation (the process wherein Customs gives refund payment advice to PFMS) is pending due to technical or administrative reasons.