Rohan Sewani

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An IGST scroll is an electronic payment document generated by the Customs department after authorizing an exporter’s Integrated Goods and Services Tax (IGST) refund claim. Because GST classifies exports as zero-rated supplies, any IGST paid at the time of shipment is eligible for a refund.

Customs generate the IGST scroll only when you file and verify the following four documents:

Customs uses the Indian Customs EDI System (ICES) to cross-reference the data across these four inputs. When the data makes a perfect match, Customs generates a unique scroll number asking banks to disburse the approved refund amount directly to your bank account.

You check your IGST scroll status because the ICES system processes refunds automatically but does not alert you when something goes wrong, so an unnoticed mismatch can stall your refund indefinitely.

Proactive tracking lets you predict when a sanctioned refund will hit your account, catch errors like an invoice mismatch early, and confirm your bank account has cleared the mandatory PFMS validation needed for payout. The ICES is an efficient system, but it doesn't alert you in case of mismatches. You must track the status proactively to stay on top of IGST refunds.

<a></a>What Happens If You Don’t Check?

Suppose your logistics team logs an invoice as “EXP-500” on the shipping bill, but your accountant enters “500” in GSTR-1. Without checking your status, you wouldn’t know that this tiny mismatch triggered a SB005 error, keeping your money trapped in the customs system until you file a data amendment.

<a></a>How to Check IGST Scroll Status Online?

You can track your IGST scroll status online through the GST Portal and ICEGATE. Your refund moves through two stages: first, your data migrates from the tax department to Customs, and second, Customs authorizes the payment.

Track IGST scroll status on the GST Portal

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Source: <a href="https://tutorial.gst.gov.in/userguide/refund/Track_Refund_Status_for_IGST_paid_on_account_of_Export_of_Goods.htm">GST Portal</a>

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<a></a>Track IGST scroll status on ‌ICEGATE

<a></a>What are the Types of IGST Scroll Statuses?

IGST scroll statuses fall into three groups: the two overall scroll outcomes that tell you if your refund is cleared (Sanctioned or Pending/Failed), the customs response codes from SB000 to SB006 that pinpoint exactly what failed during validation, and the PFMS bank validation outcomes that decide whether a sanctioned amount actually reaches your account. Reading all three together tells you exactly where your money is at any point. This section covers each in turn.

<a></a>Understanding Your IGST Scroll Outcomes

After you click on Search, the portal will display one of the two outcomes:

If your status isn't "Sanctioned," you will see a specific error code. Each code requires a different fix to get your refund back on track:

<a></a>Final Bank Verification: PFMS Outcomes

After clearing the error codes, the Public Financial Management System (PFMS) must validate your bank account before disbursing the refund amount. Here are the most common outcomes you can expect to see:

<a></a>What are the common reasons for IGST Refund delays?

The most common reasons for IGST refund delays are data mismatches between your GSTR-1 and shipping bill, the carrier not filing the Export General Manifest (EGM), PFMS bank account validation failures, regulatory alerts on your Import Export Code (IEC), missing Aadhaar authentication on the GST portal, and gaps where the IGST paid in your GSTR-3B is less than what you declared in GSTR-1. Each is explained below, with the fix for each:

Minor typos in invoice numbers, port codes, or GSTINs between the GSTR-1 and shipping bill can cause delay. Even an inconsistency in tax values or an extra character in an invoice will put the automated system off from matching the details.

Customs will not release the scroll until the carrier files the Export General Manifest (EGM). It will remain in the pending state until your shipping carrier files the EGM.

The Public Financial Management System (PFMS) must validate your bank account at the final stage. Failures can occur because of inactive accounts, incorrect IFSC codes, or a mismatch between the entity’s PAN name and bank records.

Any active investigation, compliance flag, or suspension on your Import Export Code (IEC) stops all pending refund allocations. Resolve these jurisdictional alerts and have the suspension revoked to resume processing your scroll.

Missing Aadhaar authentication on the GST portal prevents your invoice data from being shared with ICEGATE. Without this transmission, Customs cannot see your refund claim

If the cumulative IGST paid in your GSTR-3B summary is less than what you declared in your GSTR-1 invoice details, the refund will be delayed. Pay the remaining tax liability to resume the refund process.

While IGST refund delays can take weeks of waiting, your international payments can be relatively quicker with the help of Skydo.

Skydo simplifies both international collections and regulatory compliance:

Set up virtual accounts in USD, EUR, GBP, SGD, AUD, and CAD in as little as 10 to 15 minutes. Your clients pay you via local transfer networks, bypassing the high SWIFT fees and hidden markups.

Skydo auto-generates a free digital Foreign Inward Remittance Advice (FIRA) for every transaction. FIRA is critical for GST refund audits and tax assessments.

Bulk upload your shipping bills, and Skydo will map them with the right payments. In one click, you can generate an Electronic Bank Realization Certificate (eBRC) and stay compliant without delays.

You get flat pricing: under $2,000 = $19 flat; $2,000–$10,000 = $29 flat; over $10,000 = 0.3%. There are no currency conversion charges or hidden markups like banks or PayPal, which can shave off 5-10% of your income.

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Modernize the Core: Your B2B Payments Strategy Reset

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What Is Export Promotion Capital Goods (EPCG) Scheme?

The Export Promotion Capital Goods (EPCG) Scheme allows Indian exporters to import capital goods, such as machinery and equipment, at zero customs duty, provided they fulfill prescribed export obligations within a specified period. Under the scheme, businesses are generally required to complete exports worth six times the customs duty saved, known as the Specific Export Obligation (SEO), within six years of authorisation.

Certain exporters may also need to maintain their Average Export Obligation (AEO), which means continuing their historical export performance while separately fulfilling the EPCG-linked export target. The scheme is administered by the Directorate General of Foreign Trade (DGFT) under India’s Foreign Trade Policy.

The objective of the EPCG Scheme is to reduce the upfront cost of importing machinery and equipment, helping Indian businesses improve production capacity, technology, and global competitiveness.

Capital goods covered under the EPCG scheme include machinery, production equipment, computer systems, packaging units, testing instruments, tools, and similar assets used for manufacturing goods or delivering export services.&nbsp;

For example, textile manufacturers importing automated looms or IT companies importing high-performance servers qualify under the scheme.

The EPCG scheme enables businesses to import capital goods at reduced or zero customs duty in exchange for meeting prescribed export obligations. The process typically begins with obtaining an EPCG authorisation, followed by importing capital goods, and eventually fulfilling export obligations. Here’s how the scheme typically works in practice:

For example, if you import machinery worth ₹50 lakh, the applicable duty on the import is 20%. This comes to ₹10 lakh saved on duty.

Now, under SEO, your obligation becomes ₹10 lakh × 6 = ₹60 lakh. So, over the next six years, you must generate exports worth ₹60 lakh.&nbsp;

At the same time, if your business was already exporting ₹20 lakh every year before obtaining the EPCG license, you cannot let that drop. You need to continue exporting at least ₹20 lakh annually, and the ₹60 lakh target comes on top of that.

Businesses engaged in export-related activities can apply for the EPCG Scheme if they fall under the following categories:

While eligible businesses are generally required to fulfil export obligations under the scheme, not all sectors are required to maintain AEO. Certain industries are exempt due to the nature of their operations, seasonal export patterns, or policy support objectives under the Foreign Trade Policy (FTP).

What Are the Key Benefits of EPCG Scheme?

The EPCG scheme helps businesses import capital goods at reduced or zero customs duty. This lowers upfront costs, supports business expansion, encourages technology upgrades, and improves export competitiveness. Thus, directly reduces the financial pressure of expanding your business.

The EPCG Scheme helps businesses reduce the cost of importing machinery and equipment by allowing duty-free import of capital goods. This removes Basic Customs Duty (BCD), lowering the overall cost of imports for exporters.

2. GST Benefit on Domestic Procurement Under EPCG

The EPCG Scheme is not limited to imported machinery. Businesses can also procure eligible capital goods from domestic manufacturers under EPCG authorisation. In such cases, the domestic supplier, rather than the EPCG holder, may qualify for deemed export benefits under applicable GST provisions.

In simple terms, while the EPCG business receives the benefit of acquiring capital goods under the scheme, the supplier may become eligible for specific tax-related benefits for supplying goods against an EPCG authorisation.

3. Reduced Capital Expenditure Improves Export Competitiveness

By eliminating or reducing customs duty on capital goods, the EPCG Scheme lowers the upfront investment required for expansion.

Lower production costs also help exporters offer more competitive pricing in global markets, especially in price-sensitive sectors.&nbsp;

The EPCG Scheme also benefits service exporters, including IT firms, consultancies, and design agencies. It allows them to import capital goods such as servers, high-performance computers, and specialised equipment at a lower cost.&nbsp;

How to Apply for an EPCG License: A Step-by-Step Guide

Applying for an EPCG license is a fully digital process on the DGFT portal, completed in nine steps from registration to tracking your export obligation.

Step 1: Register on the DGFT Portal

Create an account using your <a href="https://www.skydo.com/blog/iec-code-full-form-importance-fees">Import Export Code</a>. A digital signature is required to proceed.&nbsp;

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Step 2: On the DGFT portal, select EPCG under services

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Next, you need to complete the ANF 5A (Application Form for EPCG Authorisation) on the portal. This form captures details about your business, capital goods to be imported, and the export obligation that you expect.

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Now, upload the relevant documents to the portal. The commonly required documents include your:

All details in the documents must match the information mentioned in the application.

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After uploading all the documents, you submit the ANF 5A form digitally and pay the required fee.

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After you submit the application, your details and documents will be reviewed by the DGFT. If all the details are accurate, the application is usually processed within a few working days.&nbsp;

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However, if any information is missing or unclear, they may ask for clarification before approval.

Once approved, you can proceed with importing the goods under EPCG benefits.

You must confirm that the imported goods are installed and operational. This is done through an installation certificate, which is submitted to DGFT.

This is an important step as the certificate is necessary after import and before your export obligation period is considered to have started. Unless this certificate is available, your EO tracking may not start formally.

After this step, your focus shifts to meeting export targets and maintaining documentation.

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For a detailed walkthrough, find the official <a href="https://content.dgft.gov.in/Website/EPCG%20CP%20User%20Manual%20v0.2.pdf">EPCG Scheme pdf</a> here.

EPCG vs Duty Drawback vs Advance Authorization: Differences &amp; Similarities

Importers often confuse the EPCG Scheme with Duty Drawback and Advance Authorization. However, each serves a different purpose within export-import operations. The table below highlights the key differences between these export incentive schemes.

While EPCG focuses on strengthening manufacturing infrastructure, Duty Drawback and Advance Authorization mainly support production inputs and export-related cost optimization.

Once businesses start managing export obligations under schemes such as EPCG, maintaining proper payment documentation becomes equally important. This is where <a href="https://www.skydo.com/">Skydo</a> supports exporters by simplifying international payment collection and compliance documentation. Skydo auto-generates <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRCs</a> and streamlines e-BRC documentation required for EPCG obligation closure.

What Happens If You Fail to Meet EPCG Export Obligation?

Failing to meet your EPCG export obligation triggers duty recovery, interest charges, and potential bank guarantee invocation. Here is what each consequence means in practice:

Under the EPCG Scheme, businesses must maintain records acknowledging that export payments were received while fulfilling export obligations and closing EPCG authorisations. <a href="https://www.skydo.com/">Skydo</a> provides a Foreign Inward Remittance Advice (FIRA) for every export payment received through the platform. FIRAs act as proof that export proceeds were received and can support documentation required for export compliance, including e-BRC generation, DGFT submissions, and EPCG-related recordkeeping.

Through the Skydo dashboard, exporters can track incoming payments, access remittance records, and download FIRAs and payment proofs from one place. This makes it easier to maintain organised records for export documentation, including processes related to e-BRC generation and EPCG compliance, as export volumes grow.&nbsp;