The Central Government, on last week, notified The Customs and Central Excise Duties Drawback Rules, 2017 which are applicable from 1st October 2017.
As an export facilitation measure post rollout of GST, the Government had granted drawback at higher composite rates. This was for the transition period of 3 months, from July to September, 2017. For claiming higher rate of drawback under the scheme, the exporter had to make a declaration stating 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.
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.
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.
Read the full text of the Notification below.
