Export Rebate not allowed if Drawback Claimed

[Praveen Nair]

It was brought to notice by one of the exporter that the department is not processing the IGST refund on exports if drawback is claim on such exports. Do you think this is right and under what condition?

AI Summary

Exporters Must Choose: IGST Refunds or Higher Drawback - Not Both, per CGST Act, 2017 & Circular No. 05/2018-CUS. An exporter raised a concern that the department is not processing IGST refunds on exports if a drawback is claimed. Participants in the discussion clarified that double benefits are not allowed under the CGST Act, 2017. It was explained that IGST refunds are permissible if the exporter opts for the lower drawback rate, which excludes the cenvat facility, and declares this at the time of filing. Circular No. 05/2018-CUS specifies that the refund amount is calculated after subtracting the drawback, irrespective of whether it is the lower or higher rate.