Question1:

One of our customer procuring cargo locally on low price and paid GST on that. Supplier assured them to refund GST paid. Now Exporter filing Shipping Bill without payment of IGST against LUT. They are eligible for DBK and DBK declaration DB002/DB003 is given. Under this circumstances whether DBK declaration will be contradictory ? How Supplier can refund GST to the Shipper ? Kindly clarify. Export Invoice is not shown IGST details.
 
Answer:

Your sentence One of our customer procuring cargo locally on low price and paid GST on that. Supplier assured them to refund GST paid is not clear. So we are giving reply in general The drawback claim is available in 2 parts:-
(a)   Custom portion
(b)   (Central Excise & Service Tax portion) against domestic proqurements and CVD + SAD for imported proquerments If you are claiming drawback of Custom portion only even then the custom authorities are asking for declaration. If you are taking only custom portion as drawback then you can claim ITC of Excise, CVD/SAD, Service Tax and as per present provision, you can claim(IGST + Custom portion). But if you are claiming drawback which is without Cenvat then you cannot claim ITC of IGST as well as taxes mentioned above .So please check the drawback rates calimed by the exporter In case, our reply is not clear. Please elaborate point no. (1)
(Reply dt. 28/09/2017)