For every west bengal entrepreneur involved in international trade, a smooth igst refund on export is the difference between healthy cash flow and a liquidity crisis. In 2026, the integration between the GST Portal and ICEGATE has become more automated, yet procedural gaps continue to trap crores of rupees in “Scroll Generation” errors.
When your capital is stuck in tax refunds, it directly limits your ability to buy raw materials or pay for labor. Many exporters in North 24 Parganas use property equity for international expansion while waiting for their refunds. This guide provides a clear process flow and a defense strategy against common rejection triggers.
IGST Refund Process Flow (2026)
The igst refund on export of goods with payment of tax is governed by Rule 96 of the CGST Rules. Unlike other refunds, there is no separate application required for goods; the Shipping Bill itself acts as the refund claim.
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Export of Goods: The exporter files the Shipping Bill on ICEGATE and the goods leave the country.
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Filing GSTR-1: The exporter must fill Table 6A of GSTR-1 with accurate Shipping Bill numbers, dates, and Port Codes.
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Filing GSTR-3B: The exporter pays the IGST and files GSTR-3B. The tax paid in Table 3.1(b) must match or exceed the amount in Table 6A of GSTR-1.
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Data Transmission: The GST Portal sends the data to ICEGATE once the returns are filed.
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Validation: ICEGATE validates the GST data against the EGM (Export General Manifest) filed by the carrier.
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Scroll Generation: If everything matches, a “Refund Scroll” is generated, and the amount is credited to the bank account.
Common Rejection Triggers & Error Codes
Despite the automated flow, a gst export refund often gets stuck due to technical mismatches. Understanding these codes is vital for a fast resolution.
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SB001 (Invalid SB Number): This happens when the Shipping Bill number entered in GSTR-1 does not exist on ICEGATE.
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SB005 (Mismatch in Invoice Number): The most common error. The invoice number in GSTR-1 must be identical to the one in the Shipping Bill.
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SB006 (Gateway EGM Not Filed): If the carrier fails to file the EGM, the igst refund on export will remain in “Pending” status indefinitely.
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PFMS Validation Failure: If the bank account linked with your udyam registration is not validated by the Public Financial Management System, the payment will bounce.
Practical Workarounds for Exporters
If your refund is stuck, you may face a short term working capital crunch. Here is how to handle bottlenecks:
1. The Table 9 Amendment
If you made a mistake in GSTR-1 (Error SB005), use Table 9 of the next GSTR-1 to amend the export details. This triggers a fresh data transmission to ICEGATE. This is a common strategy for refinancing for industrialists who need to prove liquidity to their banks.
2. Manual Refund (RFD-01) for Services
For export of services or exports under LUT (Letter of Undertaking), you must file a manual application in Form RFD-01. Ensure your gst loan records are clean, as any pending gst demand notices can lead to a “Refund Adjustment” where the department keeps your refund to pay off old dues.
3. Bridging the Gap with LAP
If a large refund scroll is delayed by more than 60 days, many business owners opt for a secured overdraft against property to maintain operations. Because the lap interest rate kolkata 2026 is lower than most unsecured credit, it is a smart working capital loan alternative.
Analysis of Rejection Reasons
| Reason | Impact | Solution |
| GSTR-3B vs GSTR-1 Mismatch | Refund blocked at GST Portal. | File an amendment in GSTR-1; ensure tax is fully paid. |
| Port Code Error | Data never reaches ICEGATE. | Verify Port Code with the Customs House Agent (CHA). |
| Risk Freight/LPC Suspense | Manual intervention needed. | Submit mortgage loan eligibility documents or proof of business to Customs. |
Summary for Global Traders
Securing your igst refund on export requires meticulous data entry. Any error in the Port Code or Invoice Number can lead to months of delay. If you are struggling with cash flow during a delay, consider switching from business loan to lap to lower your interest costs.
Stay updated on our blog for more export-import compliance tips. You can learn more about us and how we help entrepreneurs secure their financial future.
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Frequently Asked Questions (FAQs) – IGST Export Refunds 2026
1. How long does it take to receive an IGST refund in 2026?
Once the Shipping Bill is filed and GSTR-1/3B are synced, it typically takes 15 to 30 days for the scroll to generate. If it takes longer, check your status on the ICEGATE portal.
2. What is a ‘Deficiency Memo’ in GST refunds?
A Deficiency Memo is issued by the tax officer when they find missing documents or mismatches in your RFD-01 application. You must fix the errors and file a fresh rfd 01 refund application.
3. Can the department adjust my refund against old tax dues?
Yes, under Section 79 of the CGST Act, the department can adjust your refund against any confirmed gst demand notice outstanding in your name.
4. What if the EGM is not filed by the shipping line?
The igst refund on export will not be processed. You must coordinate with your Shipping Line or CHA to ensure the EGM is filed on ICEGATE with the correct container details.
5. Is there interest paid on delayed GST refunds?
Yes. If the refund is not processed within 60 days of the application, the government is liable to pay interest (usually 6% p.a.) as per CBIC guidelines.
6. Can I get a loan against my pending GST refund?
While most banks don’t fund pending refunds directly, you can use a secured overdraft against your commercial property to manage the cash flow gap.
7. What is the common reason for ‘Scroll Generation’ failure?
The most common reasons are mismatches between the GSTR-1 data and the Shipping Bill data or the bank account not being validated by PFMS.
8. Does ‘Zero Rated Supply’ mean no tax is paid?
Not necessarily. Zero-rated supply can be done either with payment of IGST (which is then refunded) or under a Letter of Undertaking (LUT) without payment of tax.
9. Can I change my bank account for the refund after filing?
Yes, you can update your bank details on the GST portal and ensure the same is updated in the ICEGATE profile to avoid validation errors.
10. How do I handle a ‘Risk Freight’ flag on my export?
A ‘Risk Freight’ flag means the customs department has flagged your export for extra scrutiny. You will need to submit physical documents, including your udyam registration and purchase invoices, to the customs office for manual clearance.
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