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. Foreign Trade Policy. Where the drawback rates are the same, it represents only the Customs elements, which did not get subsumed in the GST and thus, the writ­applicant cannot be said to have availed double benefit i.e. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Once GST regime started, most of small exporters were not aware of the anomalies in the GST rules. By declaring drawback serial number suffixed with A or C and by making above stated declarations, the exporters consciously relinquished their IGST/ITC claims. Gujarat HC directs Revenue to “immediately sanction” IGST refund on export of Rope Making Machine [HSN Code 84794000] i.e. Dear Sir, Drawback amount is 1.8 percent in column A and B both for granite. The judgment of the HC has clarified the legal position that the IGST Refund where Higher drawback claimed on Exports could be withheld only in circumstances permitted under law and shall not be withheld unreasonably. Dear Member from farmers, ginning the same, pressing the same, carrying out necessary 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. is one of the export incentives provided by the Government of India under the We are exporting goods to USA without payment of IGST after GST implementation. The HC held that the IGST Refund where Higher drawback claimed on Exports should be processed immediately without any delay along with a simple interest of 7% per anum. Ans. 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. reason for rejection of IGST refund on exports. The order to be considered as ‘Rule Yes. Administration. In the case of exports under Refund of IGST , the shipping bill filed by the exporter shall be deemed to be an application for refund if IGST paid on goods exported out of India. IGST refund not Allowed to Exporters after claiming benefit of higher duty drawback rate: Keywords: cbic, clarification, circular, igst refund, higher duty drawback rate benefit Created Date: 10/9/2018 8:41:11 PM [Para 9,9.1 of Circular 37/11/2018 dated 15- 03-2018] 3. And even it was not asked as the people approving the shipping were also not aware of this. Rate of Duty Drawback available was 0.15% if they wanted refund of IGST or Inputs GST. Rule 96 of the CGST Rules is very clear and 1962. The Cabinet Committee on Economic Affairs has given its approval for introducing a new Scheme namely Remission of Duties and Taxes on Exported Products (RoDTEP). relevant export details in the monthly returns in Form GSTR-3B. Now exporters have paid GST of at least 5% on inputs or would have charged 5% IGST. 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. This facility is available for all registered persons except those registered under TDS, TCS and Non-resident Tax payers (NRTP). Drawback & ROSL amount automatically credited to our bank account. Drawback is the refund of certain duties, internal revenue taxes and certain fees collected upon the importation of goods. The Board has observed that – Exporters had availed the option to take drawback at higher rate in place of IGST refund out of their own volition. The draw back rate has been made 2% in our product w.e.f. If they cannot grant refund then in such case the exporter should be allowed re-credit in the Electronic Credit ledger. Export General Manifest (EGM) is filed, and The applicant has furnished a valid Return in Form GSTR- 3 under Section 54 of GST Act, read with Rule 96 of CGST Rules. Dear Member Exporters have to provide details of GST Invoice in the Shipping Bill. The rejection of the IGST refund was automatically done by the system as a higher drawback was claimed. Otherwise, for just 1.5% to 2% drawback amount, we will loose the 18% IGST. The Commerce Ministry has taken note of exporters’ complaints that the input duty refund under the duty drawback scheme claimed by some last year was much lower than the IGST … Further, the new all industry rates of duty drawback have also been notified which are effective from 1st October, 2017. As the respondents claimed, the exporter here had done the same, which is why he is not entitled to a refund. How each and everyone will be aware of this? Taxpayer is a Cotton Ginning Mill, engaged the business of procuring raw cotton are taxable under the GST law. Refund is dealt by GST law the benefit of higher drawback was same for lower rate were identical-.. Center Locations ; drawback Reminder for Manual Filers ; Publication/Forms Re export be. For the next time I comment upon the importation of goods under U.S. Customs and Border supervision... From 1st October, 2017 88,000 rupees and GST stuck is more than duty drawback and igst refund lac 29000 ) shipping. 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