As an export facilitation measure, for the transition period of 3 months, from July to September, 2017, Drawback at higher composite rates was continued to be granted subject to the condition that, for claiming the higher rate of drawback, the exporter had to make a declaration and certificate was required that ‘no Input Tax Credit (ITC) of CGST/IGST is claimed’. In absence of such certification, drawback was being restricted to the customs portion of drawback.
As announced by CBEC, after 30th September 2017, drawback will be admissible only at lower rate determined on the basis of the custom duties paid on the goods imported for supplying goods for export.
Accordingly, CBEC has issued following notifications:
In other words, unlike earlier era, GST portion paid on inputs of exported goods will not be covered by drawback rates and will have to be claimed as refund as per the provisions of GST law.
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Disclaimer: This article is for the purpose of general awareness and does not represent professional opinion of the author.