Circular No.ES/ 246 / 2018-19 10th October, 2018
To: Members of the Council
Sub. : Cases where IGST refund have not been granted due to claiming higher rate of drawback OR where higher rate and lower rate were identical
Dear Member,
We wish to bring to your kind notice the problem faced by some of our members where IGST refund have not been granted due to claiming higher rate of drawback OR where higher rate and lower rate were identical.
In this connection, the Council along with other Associations took up the matter with various Custom Houses. The issue has been examined by the Board and the legal provisions related to Drawback claims are given in Circular No.37/2018-Customs dated 9th October, 2018 are as under:
‘The rates and caps of drawback specified in columns (4) and (5) of the said Schedule shall not be applicable to export of a commodity or product if such commodity or product is –
....
(d) exported claiming refund of the integrated goods and services tax paid on such exports.’
‘The rates and caps of drawback specified in columns (4) and (5) of the said Schedule shall be applicable to export of a commodity or product if the exporter satisfies the following conditions, namely:-
... ... ...
(ii) If the goods are exported on payment of integrated goods and services tax, the exporter shall declare that no refund of integrated goods and services tax paid on export product shall be claimed;…..’.
The Board has observed that –
Please note that there is no justification for re-opening the issue at this stage.
Members may kindly make a note of the above.
Thanking you,
Yours faithfully,
S. BALARAJU
EXECUTIVE DIRECTOR