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
Understanding Duty Drawback and ITC for Garment Exports Under GST: Key Insights and Options A company in Uttar Pradesh is seeking advice on exporting garments post-GST implementation. They inquire about claiming duty drawback on zero-rated exports and whether they can take input credit on GST paid for garment purchases. Responses indicate that either duty drawback or Input Tax Credit (ITC) can be claimed, not both. There are two drawback rates: higher and lower. The lower rate may be claimed if ITC is availed via bond and bank guarantee on exports. It is advised to refer to the Drawback Rules 2017 and check the Central Board of Excise and Customs (CBEC) website for updated rates. (AI Summary)
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