We have to return Duty Drawback and MEIS partially.

[harkirat singh]

Dear Sir,

We have exported a consignment. Because of some quality issues buyer has raised a Debit note of 25 % of invoice value.

We have to refund approx. 24000 to customs and approx. 37000 to DGFT

And we have to return Partial Duty Drawback + interest @18 % to customs

Partial MEIS amount to DGFT on along with 18 % interest.

Can we return MEIS & Duty Drawback Amount + 18 % interest to DGFT by debiting MEIS.

Kindly advice.

Regards

Harkirat Singh

[email protected]

AI Summary

Exporter Must Refund Duty Drawback and MEIS Plus Interest; MEIS Scrip Can't Offset These Payments A query was raised regarding the partial return of Duty Drawback and MEIS due to a buyer issuing a debit note for 25% of the invoice value because of quality issues. The exporter needs to refund approximately 24,000 to customs and 37,000 to DGFT, along with 18% interest on both Duty Drawback and MEIS. The query sought advice on whether MEIS and Duty Drawback amounts plus interest could be returned by debiting MEIS. The response clarified that the scrip can be used for certain payments but cannot be used to reverse or pay any amount for MEIS.