Duty Drawback scheme under GST

Posted on 11 June 2022 Category : GST

Duty Drawback scheme with certain modifications will continue under GST. The changes in the Duty Drawback scheme are as follows:

The Drawback shall be available only of Customs duties on imported inputs and Central Excise duty on items specified in the Fourth Schedule to the Central Excise Act 1944 (specified petroleum products, tobacco etc.) used as inputs or fuel for captive power generation.

As an export facilitation measure, for the transition period of 3 months, from July to September, 2017, Drawback at higher composite rates will continue to be granted subject to certain safeguards i.e. for claiming the higher rate of drawback, the exporter has to make a declaration and certificate is required that no Input Tax Credit (ITC) of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward.

In absence of such certification, drawback will be restricted to the customs portion of drawback.

After the presentation of Goods and Service Tax (GST) with impact from 01.07.2017, fundamental changes have been made to make Drawback arrangements are in consonance with the GST arrangements. The information charge rate of expenses canvassed in GST system are neutralized through the discount component gave under GST Laws. To the extent disadvantage is concerned, Drawback Rules, 1995 are currently supplanted by another arrangement of guidelines called 'Traditions and Central Excise Duties Drawback Rules, 2017 which became effective from first October, 2017. The meaning of disadvantage according to Rule 2(a) of DBK Rules, 2017 accommodates downside of Customs and Central Excise Duties barring Integrated Tax and remuneration Cess leviable under sub-segment (7) and (9) of Section 3 of the Customs Tariff Act, 1975 chargeable on any imported materials or excisable materials utilized in the generation or production of merchandise sent out. References to Service Tax and info administrations have been overlooked. Accordingly the disadvantage is constrained to frequency of obligations of Customs on sources of info utilized and Central Excise Duties on indicated oil based goods utilized for age of hostage control for assembling of preparing of fare merchandise.

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

What is Invoice under GST

Non Registered person under GST

Provisional attachment to protect revenue in certain cases, Sec 83 of CGST Act, 2017

Recovery of tax, Section 79 of CGST Act, 2017

GST exemptions for SME

What is CGST in brief?

Difference between GST and SGST

Export procedure changes after GST implementation

Factory stuffing procedures after GST implementation

Import of goods attracts IGST but not CVD under GST regime