Drawback of central tax means

[Nikhil Virkar]

Pls refer 2nd proviso to Section 54(3) of CGST Act. Refund of unutilised ITC cannot be claimed if drawback of central tax is claimed. Request to clarify (1) Drawback of central tax means what? (2) Which category of tax payer is allowed to claim and under which section of Customs Act? (3) How it will affect Refund u/r 89(4) when drawback allows only for Customs duty and excise as per definition of drawback rules 2017?.

[Shilpi Jain]

Yes presently drawback is of customs duty only.

[Nikhil Virkar]

Thank you madam. Request to clarify point No. 1 and 2 as nowhere in drawback rules drawback of central tax is mentioned.

AI Summary

Clarification Sought on Eligibility for Central Tax Drawback Under GST; Currently Limited to Customs Duty Only A discussion on a forum addressed the issue of drawbacks related to central tax under the Goods and Services Tax (GST) framework. The original query sought clarification on the meaning of 'drawback of central tax' and which taxpayers are eligible to claim it under the Customs Act. A response indicated that the drawback currently applies only to customs duty. The inquirer expressed gratitude but requested further clarification on the specific points, noting that the drawback of central tax is not mentioned in the existing rules.