Dear professionals
GST has subsumed all the indirect taxes including service tax, excise and VAT. Only the basic customs duty remains out of its gamut. This sweeping change essentially disturbs the current drawback mechanism.
What is the mechanism to adopted by the Government In GST to refund the basic customs duty to exporters in place of duty draw back, because the export is zero rated in GST.
Regards
J.S.Uppal
Tax Consultant
Clarification on GST: Customs Duty Refunds for Exporters via Duty Drawback or Brand Rate Fixation Explained An individual inquired about the mechanism for refunding basic customs duty to exporters under the Goods and Services Tax (GST) system, noting that GST has absorbed most indirect taxes except basic customs duty. The concern was how the government would handle refunds since exports are zero-rated under GST. A response clarified that customs duty could be refunded through All Industry Rate Duty Drawback (AIR DBK) or Brand Rate Fixation. Integrated GST (IGST) refunds are available unless goods were acquired through Advance Authorization (AA) or Export Promotion Capital Goods (EPCG) schemes, in which case no IGST refund would be provided. (AI Summary)
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