Guide on EGM Number for GST Refund

India’s exporters can take advantage of the EGM number for a GST refund and clear customs while adhering to all tax regulations. The Export General Manifest or EGM allows companies to manage business risks and check shipping documents originating from gateway ports to make their operations more straightforward.

Thus, businesses are in constant need of fast EGM processing to avoid potential penalties. 

In this blog, you will learn why the EGM document is important in the export business, what conditions must be met for filing this declaration, and its format.

What is the Export General Manifest: How Does it Work?

A shipping carrier files the EGM or export general manifest, during the export process, which is attached along with the shipping bills issued by an exporter. This crucial declaration is usually generated by agents of Indian Customs, shipping lines, airlines, and so on. 

The primary purpose of this fundamental export document is to offer detailed information about the exported goods and ensure business compliance. With its help, companies can ensure utmost transparency for commercial risk management. 

Here is how EGM filing works:

• The concerned exporter or officers at gateway port executes the customs clearance by providing key documents apart from the shipping bills
• Next, the exporter forwards the cargo to the respective carrier
• Finally, the carrier files an EGM number for a GST refund with the customs to direct the export as per the details given in the shipping bill.

Why is the Export General Manifest Important?

There are various reasons to make EGM a vital export document. These include:

• EGM acts as evidence of the export of goods. Shipment carriers file EGM in association with the customs department to authorise the export of supplies beyond territorial borders.
• Besides, EGM assists exporters to avail different benefits such as duty drawback, MEIS, and so on.
• EGM keeps track of all the commodities that have been shipped from the exporting country.
• At times, some selected items are covered in the shipping bill but not exported (or exported but later returned). These goods are also tracked with the help of a filed export general manifest. 

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Who Files Export General Manifest?

A person entrusted with the responsibilities of cargo/ air/ ocean shipment needs to file an EGM before the goods depart. As per the Customs Act, an agent or shipment in charge will be authorised to conduct the process of filing a valid return. Thereafter, this designated person will be responsible for fulfilling all the related obligations and also taking care of penalties, if any. 

What are the Conditions for Filing an EGM?

Filing EGM is a mandatory requirement and you must take care of the below-mentioned instructions while doing so:

• EGM is a legal declaration. Therefore, the signatory (person-in-charge or agent) needs to authorise a declaration certifying the validity of the document’s content. 
• An EGM amendment can only be executed when the customs officer has no objection to the data submitted. 
• As per regulation 3 of the Levy of Fees, a fee must be paid to make changes to an already filed Export General Manifest. 
• Agents are punishable as per Section 117 of the Customs Act if they are found to declare any incorrect information in the EGM.  

What is the Format of an Export General Manifest?

Based on the Export Manifest (Aircraft) Regulations of 1976 and the Export Manifest (Vessels) Regulations of 1976, an EGM must be issued and submitted. Four EGM forms are considered as per these regulations:

1. Form I: It contains the general declaration.
2. Form II: You can refer to the passenger manifest in this document.
3. Form III: For vessels, this form includes all the private properties owned by the master, crew, and officers of the ship. If an aircraft is involved, then this part comprises the cargo manifest. 
4. Form IV: In the fourth form, one finds a list of private property of the crew and the captain (for aircraft shipment). 

A few of the particulars contained in a cargo manifest are as follows:

• Captain’s name, vessel name and port of destination
• Description of exported goods, number of items, mode of shipping, and marks on packages
• Shipping bill number
• Consignor and consignee particulars
• Lighthouse certificate in addition to port dues with receipt numbers

In the private properties form, these details are to be found:

• Particulars of the shipping vessel, total number of crew, arrival from and departure to details
• Designation and name of the crew
• Traveller’s cheques and particulars of currency

Finally, in the passenger’s manifest part, an agent must declare the following details:

• Vessel’s currency upon arrival, aside from the value of money that is taken on board
• Some general details like the vessel’s name, rotation number, captain’s name, agent’s name, date of arrival and arrival from information
• Specific information about dangerous drugs and wireless apparatus on board

Officially presenting and filing an EGM number for GST refund is a game-changer when it comes to validating exports. Together with this, some mandatory documents that need to be submitted throughout the whole process while exporting from India include AD code, Importer of Record (IoR), IEC, and so on. 

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Conclusion

Under the current regulations put in place by India’s Customs, an Export General Manifest acts as a mandatory export documentation. It establishes an organised system that enables relevant authorities to better manage export-related risks and expedite the supply of products for export.

Submitting an EGM number for GST refund on time and providing a comprehensive export report help shipments clear the customs regulations quickly. 

Therefore, if you are moving goods outside the country, consider connecting to ICEGATE’s system. It will enable you to complete the export journey efficiently while consolidating worldwide options of export.

💡If you want to streamline your payment and make GST payments via credit or debit card, UPI consider using the PICE App. Explore the PICE App today and take your business to new heights.

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