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How to upload supporting documents in exports through ICEGATE


The Central Board of Indirect Taxes and Customs (CBIC) in one of its recent circulars has requested all the beneficiaries transacting with customs, including importer and exporter,to register themselves at ICEGATE.

It has already introduced Single Window Interface for Facilitating Trade (“SWIFT”) for integrating Customs and other Participating Agencies (“PGAs”) for seamless processing of Import or Export procedures and the process was implemented successfully. One of the main elements of SWIFT is eSANCHIT, which allows traders to submit all custom clearance documents electronically instead of hard copy documents of the Bills of Entry.  For making this paperwork furthermore simplified, CBIC is bringing in all PGAs under eSANCHIT whereby documents will be uploaded by the PGAs who issue LPCOs, that is, Licenses,Permits, Certificates, and Other Authorizations and not by the importer/exporter.

After the successful implementation of eSANCHIT, the CBEC has launched a pilot to test the eSanchitfacility for PGAs with three PGAs and the eSanchit facility is now available for all the PGAs that has reduced the physical interface between customs and clearing agents and increased the speed of clearance. Also, a new facility to upload supporting documents with digitally signed through ICEGATE was introduced from 1st September 2018 on a pilot basis to the Chennai Customs House and New Delhi Air Cargo Complex on a voluntary basis. After completion of the pilot, the facility is now extended to all other Customs locations and covers all type of exports under the Indian Customs EDI System (ICES). As a result, henceforth, all IEC holders/applicants are encouraged to upload or submit the documents online using digital signatures.

Procedure

The procedure for uploading the supporting documents (eSANCHIT) in the export is described below and is very similar to the process of eSANCHIT in imports:

  1. Visit the official site of ICEGATE (https://www.icegate.gov.in/)and login/sign up with the valid credentials. Next, click on the eSANCHIT link and thereby follow the steps to upload the supporting documents. The authorized persons are provided with a facility to view their uploaded documents on the site.
  2. When a person is required to submit a document after the generation of shipping bill or in response to any query of customs, an IRN (Image reference number), which is unique to each document, will be generated by the system.
  3. After the filing of shipping bill, custom officers will access the uploaded supporting documents and if necessary, they may call for any additional documents that can be submitted online.
  4. Taxpayers have been provided with a facility to see information about transmission status of export data/records to the ICEGATE from GST portal.
  5. Also,after the shipping bill is filed, a person is allowed to visit the designated place for the purpose of goods registration or verification of documents and Let Export Orders. At present, electronic copies of shipping bills and LEO are provided to the authorized persons on which digital signatures will be applied.
  6. According to the shipping bills, 2011, all supporting documents must be retained in original for at least 5 years from the date of acceptance of the shipping bill.
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How to reverse wrongly availed CENVAT Credit ?

What is CENVAT and CENVAT credit?
CENVAT stands for Central Value Added Tax. It was initially introduced as MODVAT (Modified VAT) in the year 1986, that allows the manufacturers to avail credit of duty paid on inputs used in the manufacturing of finished products. Later, the scheme extended to capital goods also. In the year 2002, the credit of service tax paid on input services was introduced for the very first time. In 2004, finally, CENVAT credit rules 2004 came into force which replaced all the existing laws regarding CENVAT credit that facilitated a manufacturer and an output service provider to take credit on excise duty paid on input or capital goods and service tax paid on input services. Such credit of excise duty and service tax together is known as CENVAT credit, that can be utilized to pay excise duty on final products and service tax on output services.


Reversal of CENVAT credit:
As the GST, that is, the Goods and Service tax replaced all the indirect taxes levied previously in India. Some taxpayers are facing the problem regarding the reversal of CENVAT credit that was wrongly availed in the earlier tax regime. The Central Board of Indirect Taxes and Customs (CBIC) examined the issue and has provided clarifications relating to recovery of arrears of wrongly availed CENVAT credit under the existing law and reversal of inadmissible CENVAT credit under the GST regime, along with applicability of Interest, Penalty or Late Fee under Existing Law or GST.

According to the CBIC, there are few points to be considered in respect to recovery of arrears arising out of proceedings as per the law.
• If the arrears have been availed wrongly as CENVAT credit, then any amount of tax, fine, penalty or interest and duty realizable under the existing law should be recovered in the form of arrear of tax under the Central GST Act.
• It is possible to carry forward the CENVAT credit of central excise duty or service tax that has been availed under the existing law. However, it should be done as the terms of transitional provisions. Credit that is not mentioned under the terms of section 140 of the Central GST Act cannot be carried forward but can be recovered as an arrear of tax under the Central GST Act.
For the recovery of arrears, the following method is prescribed by the board.
• The CBIC has specified that the reversal of CENVAT credit of central excise duty, service tax, wrongly carried CENVAT credit under the existing law or amount carried forward as transitional credit, unless recovered under the existing law shall be recovered as central tax liability to be paid through the utilization of amounts available in the electronic credit ledger or electronic cash ledger of the registered assessee, and the same shall be recorded in Part II of the Electronic Liability Register.

• If the arrears of interest, late fee and penalty has been wrongly carried forward in relation to CENVAT credit, the same should be recovered as interest, late fee and penalty of central tax to be paid through the utilization of the amount available in electronic cash ledger of the registered person. It should thereafter be recorded in Part II of the Electronic Liability Register.

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