Duty Drawback- Urgent

[Aarushi Raturi]

Dear Sir,

We are UP based company, earlier exporting apparels without vat and claiming duty drawback , post gst implementation we are going to export first time by the end of month September 2017 .

My queries are

1 . We will be exporting graments with zero rated tax , have taken bond for the same purpose , can we claim duty drawback ? if yes will the rate of drawback remain same as earlier ?

2. Can we take input credit of GST paid on purchase of those garments ?

Kindly revert ASAP.

Regards

Aarushi

[KASTURI SETHI]

EIther drawback or ITC can be claimed. Both cannot be claimed, your supply of goods being zero rated.

[Kishan Barai]

There are 2 Drawback Rates higher and lower. Lower i.e (after availment of Cenvat Credit ) could be still claimed as per judgement passed by FIEO even after availment of ITC via Bond + BG on Exports.

[Nash Industries I Pvt Ltd]

Please refer to Drawback rules, 2017 issued last week. Both ITC and drawback cannot be claimed. DBK is allowed only if the products have imported contents.

[Kishan Barai]

Respected Sir,

Recently we did shipment of Candy Making Machine to Lusaka Africa, in that we got both ITC as well as DBK lower rate. Both ITC & DBK higher rate can't be claimed but lower is allowed if filed at the time of Shipping Bill , we got this information from FIEO & its still in process.

Thank You

[Nash Industries I Pvt Ltd]

There is no upper limit and lower limit under the new drawback rates wef 01.10.2017. Please check in cbec website about the new rates

AI Summary

Zero-rated exports: choice between duty drawback and input tax credit, lower drawback may be claimable alongside ITC in limited cases.
Exporters of zero-rated garments under GST generally must elect between claiming duty drawback and claiming input tax credit; duty drawback is available only where exported goods have imported content. Historically there were higher and lower drawback rates, with the higher rate incompatible with ITC but the lower rate sometimes claimed alongside ITC when filed at the time of the shipping bill. Drawback Rules, 2017 and subsequent rate notifications modify rate structure and administrative practice, so exporters must check the notified rates and procedural requirements.