Export General Manifest and Bill of Lading. F. No. Circular on duty drawback: As per Circular No.37/2018 – Customs dated 9 October 2018, the Central Board of Indirect Taxes and Customs (‘CBIC’): Exporters avail the option to take drawback at a higher rate in place of IGST refund on their own volition as part of the prescribed documentation/ forms. Read more on CLARIFICATION ON ISSUES RELATING TO REFUND. It should purely be for Customs portions (Drawback - When Cenvat Credit is not available - Its option B on shipping Bill). Being an undisputed fact that IGST refund is payable to the petitioner, the petitioner is absolutely entitled to the IGST refund from the respondents. 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. However, The IGST paid on the import is admissible as Input tax credit (ITC). Refund of excess duty drawback is a unilateral action: Refund of the differential duty drawback by the Taxpayer is a unilateral act by the Taxpayer not recognized under the law. 1. As per the regular practice of CHA, they have filled shipping bill with higher rate of drawback. Even govt official were also not prepared/ ready for this automatic process. In be an application for refund of IGST, as per Rule 96 of the Central Goods and Because in the initial period of operation of GST, exporters were not aware that if they claimed 1% Duty Drawback then they would not be allowed refund of IGST on Inputs. per Section 16(3)(b) read with Section 54 of the IGST Act, the Taxpayer has an 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. We claimed drawback of 88,000 rupees and GST stuck is more than 15 lac. IGST refund not Allowed to Exporters after claiming benefit of higher duty drawback rate: CBIC Clarification Circular No.37/2018 Customs dt. Under GST, exports and supplies to SEZ are zero rated as per Section 16 of the IGST … 01.10.2017. This rule came into affect from 1.7.2017 and it was published on 29.06.2017. There have been several instances where taxpayers had to resort to litigation in the High Court in order to obtain specific relief and direction for grant of IGST refunds and also in cases of IGST Refund where Higher drawback claimed on Exports. Refund of excess duty drawback is a unilateral action: Refund of the differential duty drawback by the Taxpayer is a unilateral act by the Taxpayer not recognized under law. According to a government official, “exporters have said that they are willing to pay back the drawback with interest and they should be instead given IGST refund which is a much higher amount. Ans. No.131/2016-Cus(NT) dated 31.10.2016 (as amended by Notfn. Totally wrong practice done by govt and CBIC. The draw back rate has been made 2% in our product w.e.f. Yes. 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 If my understanding is correct, after 01.07.17, if a person is claiming ‘All Industry Rate’ of Duty Drawback, still he can claim refund of accumulated ITC on account of continuous exports. 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. refund under Section 54(10) or 54(11) of the CGST Act. decision taken by the Government of India, exporters availing higher rate of duty 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. was not a permitted reason under the GST law to withhold refunds. Introduction: IGST refund inspite of duty drawback on higher rate. The petitioner claimed that he exported after paying the tax and he is entitled to refund of the input tax credit as per Section 16(3) of the IGST Act.. drawback may not be eligible for refund of IGST on exports. and not pay. When CBIC own people were not aware of this rule then how they can expect exporters and their CHAs to know this. Where the government contemplates expanding the scope of the restrictions for grant of refund, the same may have to be brought only by way of an amendment to the existing provisions of GST laws on of which is related to IGST Refund where Higher drawback claimed on Exports. Despite the repeated follow-ups, the 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. To ease this communication, the GST system has added a new Facility of “Communication Between Taxpayers” on the GST portal. 29000) and we have paid IGST 18% (357000) as we wanted to claim refund after export procedure done. The contents of this article are solely for informational purpose. Introduction: IGST refund inspite of duty drawback on higher rate. 450/ 119/2017-Cus IV Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes & Customs) Room No. delay. Over 1.86 lakh customs and duty drawback refund was processed totalling Rs 915.56 crore, the CBIC said. 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. 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Legal provisions related to drawback claims are as under: 2.1 Notes and and.

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