Import Refund ??

[Kishan Barai]

Suppose A import products for his own manufacturing unit & prepare finished product & sell it locally. Will he get refund of CVD & SAD ??

Suppose B import products for his own manufacturing unit & prepare finished product & sell it globally (Export) . Will he get refund of Import duty without availing AA / DFIA / EOU ??

Please elaborate your views in details along with present & GST scenario where there would be BCD & IGST

Thank You

[Ganeshan Kalyani]

1) the manufacturer can avail cenvat credit of CVD and SAD on output excise duty liability on removal of goods from factory for domestic consumption.

2) Since export is not taxable. The import duty should be able to be refunded to you.

IGST is creditable under GST subject to certain conditions. But we will have to wait for final draft.Thanks.

[Kishan Barai]

Thank you for your great reply

[YAGAY and SUN]

Final GST Law will decide the fate of such transactions. Till then, one should adopt wait and watch policy. However, it is good to conduct simulations in GST Transactions.

AI Summary

Import duty refund for exports; domestic manufacturers claim cenvat credit for CVD and SAD; IGST credit subject to law.
For domestic sales, a manufacturer may avail cenvat credit of CVD and SAD against output excise duty on removal for domestic consumption. For exports, imported duties are in principle refundable because exports are zero-rated, allowing refund of import duty without relying on special authorisations, subject to procedural rules. Under GST, IGST on imports is creditable subject to conditions to be specified in the final law, so treatment depends on the enacted GST provisions.