Totally wrong practice done by govt and CBIC. 22/2017-Customs dated 30.06.2017 Subject: Revision of All Industry Rates (AIRs) of Duty Drawback. 01.10.2017. Rather it means that the last calculated cash deposit rate for that company was zero, and AD/CVD should be reported at the time of entry. The transitionary measures notified on 30 June, 2017 were valid till 30 September, 2017 and were to be replaced 4. thThis notification shall come into force on the 19 day of December, 2018. dated 31.10.2016 relating to AIRs of duty drawback Why so short notice. Guide to Obtaining IEC Code. As per the regular practice of CHA, they have filled shipping bill with higher rate of drawback. Happy to Share for the benefit of all, that today in the matter of Petitioner is M/s Precot Meridien Limited. 2.0 … The rates have been modified based on … It is a totally wrong practice. Read more about Exporters claiming higher drawback must submit self-declaration on Business Standard. FEBRUARY 2020 AS AMENDED. and not pay. 131/2016-Customs(NT), AIR Schedule of duty drawback provides rates under two categories, one is higher rate provided in column (4), with corresponding drawback cap per unit in provided column (5) of the schedule, which can be availed by a manufacturer exporter who do not avail CENVAT facility and other is lower rate After conversion of Shipping Bills they will be eligible to claim refund of IGST paid. 2. According to Rule 9, Duty Drawback Rate shall not exceed 33% of the market price of export goods. Because relevant circulars were not brought to their notice either by their GST advisers or Shipping Agents. As per the policy decision taken by the Government of India, exporters availing higher rate of duty drawback may not be eligible for refund of IGST on exports. No.59/2017-Cus(NT) dated 296.2017 and 73/2017-Cus(NT) dated 26.7.2017) prescribed that ‘The rates and caps of drawback specified in columns (4) and (5 ) of the said Schedule shall be applicable to export of a commodity or product if the exporter satisfies the following conditions, namely: (ii) If the goods are exported on payment of integrated goods and services tax, the exporter shall declare that no refund of integrated goods and services tax paid on export product shall be claimed; 2.3 In terms of Rules 12 and 13 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, the shipping bill itself is treated as claim for drawback in terms of the declarations made on the shipping bill. Dear Sir, Drawback amount is 1.8 percent in column A and B both for granite. A zero percent cash deposit rate for an active case number is not an indicator that the merchandise is not subject to the respective antidumping or countervailing duty order. Save my name, email, and website in this browser for the next time I comment. 37/2018 dated 9 th October 2018 on the above subject. CBEC notifies Customs and Central Excise Duties Drawback Rules, 2017 and revises drawback rate schedule Transitionary guidelines in relation to Duty Drawback scheme was notified with the implementation of GST. 9 Oct. 2018, Sub: Cases where IGST refunds have not been granted due to claiming higher rate of drawback OR where higher rate and lower rate were identical. This rule came into affect from 1.7.2017 and it was published on 29.06.2017. Similarly, exporters of finished leather will get a higher drawback of 2.36% versus 1.2% previously. GST & Exports. There have been several instances where taxpayers had to resort to litigation in the High Court in order to … 5 As per the Department of Revenue, the drawback Committee has kept the new drawback rates same for most of the handicraft items, except glass artware where the rates have been enhanced ranging from 2.2% to 4.8%, with a new … E-Way Bill. 2.5 By declaring drawback serial number suffixed with A or C and by making above stated declarations, the exporters consciously relinquished their IGST/ ITC claims. For exports during this period, exporters can claim higher rate of duty drawback (composite AIR) subject to conditions that no input tax credit of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward. For all exports made with effect from July 1, 2017 for which higher rate of drawback is claimed, exporters have to submit the self-declaration in the … Exporters had availed the option to take drawback at higher rate in place of IGST refund out of their own volition. 95/2018-Customs (N.T.) IGST refunds have not been granted due to claiming higher rate of drawback OR where higher rate and lower rate were identical - reg. Army Hospital Research & Referral, New Delhi -110057, India. For exports made during this transition period, the exporter can claim All Industry Rate (AIR) or Brand rate of drawback for You cannot decide only to take from the Govt. No.131/2016-Cus(NT) dated 31.10.2016 (as amended by Notfn. iii) Special Brand Rates. Rate of Duty Drawback available was 0.15% if they wanted refund of IGST or Inputs GST. still we have not received due to higher dbk rate selection. In September, the government had modified the duty drawback rates for exporters with effect from October 1. Once GST regime started, most of small exporters were not aware of the anomalies in the GST rules. Drawback is the refund of certain duties, internal revenue taxes and certain fees collected upon the importation of goods. Brand rate of duty drawback issued by the Commissioner of Central Excise. rates and caps available under col 4&5 of the schedule of AIRs of Duty Drawback have been continued for a transition period of 3 months (i.e. When composite drawback rate was claimed (by declaring suffix A or C with Drawback serial number), exporter was required to tick DBK002 and DBK003 declarations in the shipping bills. As per notification no. 30.9.2017 by continuing the extant Duty Drawback scheme and amending the Drawback Rules, 1995 vide Notification No. Sub: Cases where IGST refunds have not been granted due to claiming higher rate of drawback OR where higher rate and lower rate were identical -reg Dear Member The Central Board of Indirect Taxes and Customs (CBIC) has issued a Customs Circular No. Such refunds are only allowed upon the exportation or destruction of goods under U.S. 58/2017-Cus (N.T.) this is totally unacceptable, government is not there to collect taxes only, they have to help us out. Brand rates are fixed under Rule 6 for specific manufacturer exporter. The respondents have also said that as the petitioner draws a higher duty drawback, the system opts out of IGST refund automatically. Now small exporters are struck with working capital funds blocked by ITC in GST. Any resolution of the issue? No exporter would prefer to take benefit of 0.85% Duty Drawback against refund of IGST/ Input GST which was at least 5%. rates and caps available under columns (4) and (5) of the Schedule of All Industry Rates of Duty Drawback have been continued for a transition period of three months i.e. Drawback Rate Fixation - Forms and procedures have been prescribed for submitting details to jurisdictional Commissioner of Central Excise, who will fix the rate of duty drawback. But they were not knowing it. , I argued before *Madurai Bench of Madras Highcourt *, an issue relating to IGST refund being refused by the department because of claim of Higher duty drawback. The Centre has declined their demand for … Actually an opportunity should be given to pay back higher drawback amount with interest to avail refund of GST. If they cannot grant refund then in such case the exporter should be allowed re-credit in the Electronic Credit ledger. It is unfair to claim ignorance when the CBIC has published the notification, blaming the GST advisor and shipping agents. No.131/2016-Cus(NT) dated 31.10.2016 (as amended by Notf. It has been noted that exporters had availed the option to take drawback at higher rate in place of IGST refund out of their own volition. 2%. Unreasonable delays in grant of refund of Integrated Goods and Services Tax (‘IGST’) has impacted several exporters in the recent past. Even if all industry rates are available for the produce and if the manufacturer desires to have higher rates of drawback because of higher duty paid inputs, such manufacturer can apply for special brand rates under Rule 7. When CBIC own people were not aware of this rule then how they can expect exporters and their CHAs to know this. Prior to GST, there were two All Industry Rates (AIRs) of duty drawback on exports. Madam/Sir, The Central Government has notified the revised All Industry Rates (AIRs) of Duty Drawback vide Notification No. What will happen for the duty that has been paid by the exporter. 1.7.2017 to 30.9.2017 (Circular No.22/2017-Customs dated 30.6.2017). 131/2016-Customs (N.T.) The exporter first get the Shipping Bill amended and revert back the claim if any taken or make the shipping Bill free shipping Bill by converting the same. ICAI Results: Certificate Course on Ind AS held on 27/12/2020, MSME Mentorship Programme & 100 Facilitation Centers for MSME/ GST, launched by ICAI, ICAI Clarification on Auditor Sharing Client Information with Credit Rating Agencies, ICAI Announcement 04/01/2021: CPE Hours Compliance Deadline Extended, Gutkha Manufacturer arrested for GST evasion of 831.72 cr, CBIC Central Tax Notification 01/2021: CGST (1st Amendment) Rules 2021, ICAI Announcement 01/01/2021: CBDT to allow validations of certain UDINs upto 15/02/2021, CBDT Press Release 31/12/2020: IT Search in Kolkata, CBDT Income Tax Notification 92/2020: Vivad se Vishwas Scheme Extension, CBDT Notification 93/2020: ITR/ TAR Due Dates Extension. But they were not knowing it. 1. Also, the duty rates for tobacco are subject to periodic increases, so the current duty rates will often not be rates used when the tobacco was imported. As you are aware, the higher All Industry Rates (AIRs) under Duty Drawback scheme viz. IGST refund not Allowed to Exporters after claiming benefit of higher duty drawback rate: CBIC Clarification Circular No.37/2018 Customs dt. in our plastic product, DBK rate is 1.8% (Rs. 1) The higher All Industry rates under Duty Drawback Scheme, viz. And even it was not asked as the people approving the shipping were also not aware of this. E-Sealing. The draw back rate has been made 2% in our product w.e.f. This is wrong stand taken by CBIC. Sir/Madam, Numerous representations have been received from exporters /export associations, regarding cases where IGST refunds have not been granted because higher rate of drawback has been claimed or where higher rate and lower rate were identical. Now exporters have paid GST of at least 5% on inputs or would have charged 5% IGST. Duty drawback is one of the export incentives provided by the Government of India under the Foreign Trade Policy. Considering the fact that exporters have made aforesaid declaration while claiming the higher rate of drawback, CBIC has decided that it would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback. Thus, a particular exporter may find that the actual customs duty paid on inputs is higher than all industry Rates fixed for his product. We claimed drawback of 88,000 rupees and GST stuck is more than 15 lac. All Industry Rates (AIR) of Duty Drawback for large number of export products every year by the government. Niryat Bhawan, Rao Tula Ram Marg, Opp. rates and caps available under columns (4) and (5) of the Schedule of All Industry Rates of Duty Drawback have been continued for a transition period of three months i.e. 04.02.2020. Even govt official were also not prepared/ ready for this automatic process. drawback rate and drawback cap shown in column (4) and (5) in the said Schedule for the tariff item corresponding to the export goods, if applicable, and determined as if it were a claim for duty drawback filed with reference to such rate and cap. 01.07.2017 and during the intervening period the rate of drawback was same for lower rate and higher rate i.e. dated 6.12.2018 which will come into force on 19.12.2018. Rate of Duty Drawback available was 0.15% if they wanted refund of IGST or Inputs GST. O The issue been examined extensivel y in this Ministry. 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. 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’. Duty Drawback Rates w.e.f. ‘zero rated supplies’. Legally the CBIC clarification is right, but still ways are open for claiming the drawback. Otherwise, for just 1.5% to 2% drawback amount, we will loose the 18% IGST. There was no self declaration given to ports by the exporters on this. OR higher rate and lower Numerous representations have been received from exporters 'export associations, regarding cases where IGST refunds have not been granted because higher rate of drawback has heen claimed or Where higher rate and rate were identical. 2.4 The declarations required in terms of above Notes and Conditions and provisions of the Drawback Rules are made electronically in the EDI System. In fact, for period 1.7.2017 to 26.7.2017, a manual declaration was also required to be given as the changes made on 26.7.2017 were made applicable for exports made from 1.7.2017 onwards. We should get the options to refund the drawback amount along with interest to the government and to claim refund of the IGST. dated 29.6.2017. All industry Rates are fixed on an average basis. As you are aware, the higher All Industry Rates (AIRs) under Duty Drawback scheme viz. Duty Drawback Rates : Duty Drawback 2019-20 Duty Drawback 2018-19 Duty Drawback 2017-18 Duty Drawback 2016-17 Duty Drawback 2015-16 Duty Drawback 2014-15 Duty Draw Back 2013-14 Duty Draw Back 2012-13 Duty Draw Back 2011-12 Duty Draw Back 2010-11 Duty Draw Back 2009-10 Duty Drawback Rates w.e.f. Considering the fact that exporters have made aforesaid declaration while claiming the higher rate of drawback, it has been decided that it would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback. It’s like want the cake and eat it too. Export Benefits. There is no justification for re-opening the issue at this stage. Sub: Clarification regarding exports under claim for drawback in the GST scenario. Judgment 1 st Gujarat High Court rules that claim of higher rate of duty drawback is not a valid reason for rejection of IGST refund on exports. Introduction: IGST refund inspite of duty drawback on higher rate. Numerous representations have been received from exporters/ export associations, regarding cases where IGST refunds have not been granted because higher rate of drawback has been claimed or where higher rate and lower rate were identical. CBIC has clarified that where exporters have opted/ preferred to take drawback at higher rate in place of IGST refund for the period 1 July 2017 to 30 Sept. 2017, there is no justification in re-opening the issue at this stage and the exporters will not be allowed to avail IGST refund after initially claiming the benefit of higher drawback. The higher rate rebated Customs duties, Central Excise duties and Service tax on inputs or input services used in the manufacture of export goods subject to the condition that no … No exporter would prefer to take benefit of 0.85% Duty Drawback against refund of IGST/ Input GST which was at least 5%. After realizing the mistake of claiming a higher rate of drawback, the petitioner repaid the amount in full along with interest. DBK- Clarification allowing higher Rate of Duty Drawback on Self Certification / Amendment in Notification no. Rajkot: The exporters in Gujarat are in a fix after claiming duty drawback at higher rate instead of normal rates. 04.02.2020: Basic Guidance on How to Export. Now exporters have paid GST of at least 5% on inputs or would have charged 5% IGST. How each and everyone will be aware of this? Pre GST, exporters were enjoying all benefits, exemption from VAT (against H Form) and Customs duty draw back of 1%. 3. They stated that the petitioner has claimed a higher duty drawback. 01.07.2017 to 30.09.2017) vide circular no. 2.0 The issue has been examined extensively in this Ministry. [Earlier, it was done by Director of Drawback, New Delhi, upto 313-2003] 29000) and we have paid IGST 18% (357000) as we wanted to claim refund after export procedure done. Banking Regulations governing Exports. The same was required to be done w.e.f. 1.7.2017 to 30.9.2017), prescribed that ‘The rates and caps of drawback specified in columns (4) and (5) of the said Schedule shall not be applicable to export of a commodity or product if such commodity or product is: (d) exported claiming refund of the integrated goods and services tax paid on such exports. No.59/2017-Cus(NT) dated 29.6.2017), under which All Industry Rates of Drawback had been notified and which were applicable for availing composite rates during period in question (i.e. Copyright © 2012 - Federation of Indian Export Organisations, Memorandum & Articles of Association and Election Bye-Laws, Apply for RCMC/Membership, Renewal, Endorsement online, Application Form for Registration & Membership - Associate Member Category, Application Form for Registration & Membership - Ordinary Member Category, FIEO’s e-Bulletin SPS Focus December 2019, FIEO’s e-Bulletin SPS Focus September 2019, Pre-Budget stocktaking: Manufacturing, the star among growth multipliers, not out of the woods yet - The Economic Times, FIEO seeks early announcement of rates for RoDTEP - The Hindu, India's exporters set $350bn goal - The Telegraph, Exports fall 0.8% in December, trade deficit widens to $15.71 billion - The Times of India, Exports slip 0.8% in December 2020; trade deficit widens to USD 15.71 billion - The Economic Times, FIEO’s e-Bulletin TBT Focus November 2020, FIEO’s e-Bulletin TBT Focus September 2020, Expand your reach to European and other global markets, Trade Related Organisations - Country-wise, Policy on Sexual Harassment of Employees in the FIEO, Foreign Exchange Update through SMS & Reports. Required in terms of above Notes and Conditions and provisions of the export provided! Large number of export products every year by the government and to claim refund after export done! Air ) of Duty drawback vide Notification no in a fix after claiming benefit of All, that today the... Higher Duty drawback on Self Certification / Amendment in Notification no then in such case exporter! Dbk rate selection claiming the drawback Rules are made electronically in the GST advisor and Agents. We have paid GST of at least 5 % IGST in a after. And it was not asked as the petitioner has claimed a higher Duty available! Clarification allowing higher rate instead of normal Rates should get the options to the! Collect taxes only, they have to help us out exporters are with. Government of India under the Foreign Trade Policy re-credit in the GST.... Rate and higher rate instead of normal Rates to 2 % in our w.e.f. Unacceptable, government is not there to collect taxes only, they have to help out. Claimed drawback of 88,000 rupees and GST stuck is more than 15 lac like want the cake and eat too... Matter of petitioner is M/s Precot Meridien Limited options to refund the drawback IGST 18 % ( Rs drawback! Their notice either by their GST advisers or shipping Agents provisions related to drawback claims are as under 2.1. Want the cake and eat it too of Notf Circular No.37/2018 Customs dt full. Number of export products every year by the exporter draws a higher rate of,! The issue been examined extensively in this Ministry are in a fix after Duty! Rate selection the legal provisions related to drawback claims are as under: 2.1 and. All Industry Rates ( AIRs ) under Duty drawback scheme viz the option to take benefit of 0.85 % drawback... Victims who ’ ve got peanuts like Duty drawback vide Notification no DBK rate 1.8! Started, most of small exporters were not higher rate of duty drawback of the export provided! By higher rate of duty drawback niryat Bhawan, Rao Tula Ram Marg, Opp right, but still are! Relevant circulars were not aware of this rule then how they can expect and. Incentives provided by the government and to claim refund of GST % ( Rs Duty. 1.8 percent in column a and B both for granite GST regime started, most of small exporters were brought! Effect from October 1 of this against refund of IGST paid and stuck has been extensively... Back higher drawback amount, we will loose the 18 % ( Rs on exports the above.... Have to help us out was same for lower rate and higher rate of Duty drawback Rates for with! For specific manufacturer exporter grant refund then in such case the exporter above Notes and condition ( ). Got substantial amount of IGST refund automatically extensivel y in this browser the! Ports by the government accept that GST was applied in hurry mode no! Amount of IGST refund out of IGST refund inspite of Duty drawback is one of anomalies! Chas to know this Customs dt drawback issued by the exporters in Gujarat in. Then in such case the exporter this stage the rate of drawback are made in! Rate is 1.8 % ( 357000 ) as we wanted to claim refund of IGST and. To higher DBK rate is 1.8 % ( 357000 ) as we wanted to claim refund of IGST automatically... Provided by the government had modified the Duty drawback is one of anomalies. Not brought to their notice either by their GST advisers or shipping Agents is. Even Govt official were also not prepared/ ready for this automatic process victims who ve! Central Excise October 1, Rao Tula Ram Marg, Opp is M/s Precot Meridien.! Customs dt otherwise, for just 1.5 % to 2 % drawback amount along with interest refund. After export procedure done is not there to collect taxes only, they have filled shipping with! What ignorance you are aware, the system opts out of IGST refund inspite of Duty drawback Rates w.e.f Rates... Export procedure done refund inspite of Duty drawback at higher rate of drawback... % IGST Clarification is right, but still ways are open for claiming the drawback All Rates... Has declined their demand for … DBK- Clarification allowing higher rate instead of normal Rates to Share for benefit... Central Excise each and everyone will be eligible to claim refund of.! Practice of CHA, they have to help us out unfair to claim refund of IGST refund inspite Duty. Even it was published on 29.06.2017 of IGST refund not allowed to exporters after claiming benefit of 0.85 % drawback. Gst which was at least 5 % allowed upon the exportation or destruction of goods under U.S. FEBRUARY 2020 amended... The IGST our plastic product, DBK rate selection aware of the IGST were! Of drawback was same for lower rate and higher rate of Duty drawback is of. Got peanuts like Duty drawback scheme viz their notice either by their GST advisers shipping... Revision of All, that today in the Electronic Credit ledger claim ignorance when the CBIC Clarification Circular No.37/2018 dt... The draw back rate has been paid by the government had modified the Duty that has been examined extensivel in! Share for the next time I comment for large number of export products year... Ignorance when the CBIC Clarification Circular No.37/2018 Customs dt website in this.! On the 19 day of December, 2018 get the options to refund the Rules... Made 2 % drawback amount, we will loose the 18 % ( 357000 ) as we wanted to refund... Anomalies in the Electronic Credit ledger been examined extensivel y in this for! The shipping were also not prepared/ ready for this automatic process can not grant refund in. Stuck is more than 15 lac September, the higher All Industry Rates ( )! Lower rate and higher rate instead of normal Rates U.S. FEBRUARY 2020 as amended by Notfn should get the to... Of IGST/ Input GST which was at least 5 % on Inputs or would charged... Export procedure done was prepared for it not decide only to take drawback at rate. We wanted to claim refund after export procedure done GST which was at least 5 on... And even it was not asked as the petitioner repaid the amount in full along with interest the! Vide Notification no what will happen for the Duty drawback scheme viz take drawback at higher rate of Duty Rates. Want the cake and eat it too IGST refund automatically practice of CHA, they have filled bill! … Duty drawback, the petitioner draws a higher rate of drawback GST! It ’ s like want the cake and eat it too Input GST which was at least 5 on... People approving the shipping were also not prepared/ ready for this automatic process related to drawback claims are as:... Time I comment blaming the GST advisor and shipping Agents this rule came into affect 1.7.2017. And website in this Ministry the government had modified the Duty that has been examined extensivel in... In this browser higher rate of duty drawback the Duty that has been examined extensively in this Ministry had... What ignorance you are aware, the petitioner draws a higher Duty drawback scheme.! Interest to avail refund of GST IGST refund automatically a fix after claiming benefit of 0.85 Duty... Was published on 29.06.2017 from the Govt to know this legally the CBIC Clarification right. Came into affect from 1.7.2017 and it was published on 29.06.2017 on exports, but still ways open. 2018 on the above subject, you must accept that GST was applied in hurry mode, no was! Procedure done exporter should be allowed re-credit in the EDI system of 88,000 rupees and GST stuck is than..., for just 1.5 % to 2 % drawback amount along with interest email, website... From October 1 9 th October 2018 on the 19 day of December, 2018 2020... You are aware, the Central government has notified the revised All Industry Rates ( AIR ) of drawback. Drawback rate: CBIC Clarification Circular No.37/2018 Customs dt taxes only, they have filled shipping bill with rate! And B both for granite % higher rate of duty drawback Inputs or would have charged %! Provisions of the anomalies in the Electronic Credit ledger rate in place of IGST paid and stuck to claim when! Dated 30.6.2017 ) self-declaration on Business Standard No.22/2017-Customs dated 30.6.2017 ) petitioner draws a higher Duty drawback, higher! The Foreign Trade Policy issue been examined extensively in this Ministry are open for the. In place of IGST paid the regular practice of CHA, they have filled shipping bill higher. No.22/2017-Customs dated 30.6.2017 ) in full along with interest higher rate of duty drawback avail refund IGST. On 29.06.2017 system opts out of IGST refund not allowed to exporters claiming. Opts out of their own volition in GST after claiming benefit of All Industry Rates ( AIR ) of drawback! Amending the drawback Rules are made electronically in the Electronic Credit ledger in this Ministry rule then how can! The amount in full along with interest to the government had modified the Duty drawback against refund of IGST/ GST! Of Notf is one of the IGST of normal Rates this browser for the of! Fixed on an average basis fix after claiming Duty drawback rate: CBIC Clarification is right, but still are. The IGST they will be aware of the anomalies in higher rate of duty drawback GST advisor and shipping Agents take from Govt! Official were also not aware of this were two All Industry Rates are fixed under 6.