Question 106:
We are used imported and indiginous raw material for manufacturing of goods. we are selling goods within India and Out of India (Export). Can we claim Drawback at the time of Export and Refund as well as taking credit of GST. Thanks and Regards Ajaykumar Singh.

Answer
 The Central Government has notified the Customs and Central Excise Duties Drawback Rules, 2017 (hereinafter referred to as Drawback Rules 2017) vide Notification No. 88/2017-Customs (N.T.) dt 21.09.2017.

In these Rules Definition of Drawback has been amended to provide for drawback of Customs and Central Excise duties excluding integrated tax leviable under sub-section (7) and compensation cess leviable under sub-section (9) respectively of section 3 of the Customs Tariff Act, 1975 chargeable on any imported materials or excisable materials used in the manufacture of goods exported;

Further The Central Government has also revised All Industry Rates (AIRs) of Drawback vide Notification No. 89/2017-Customs (N.T.) dated 21.9.2017 which comes into force on 1.10.2017. Now the Composite rates of Drawback are being discontinued w.e.f. 1.10.2017 and only the custom duty is now being refunded in drawback rate.


There are two types of drawback:
One is AIR, other is Brand rate fixation. AIR is available to every product mentioned in rate list whether manufactured from indigenous product or imported products.
So far as Brand rate fixation is concerned you get drawback of actual duty paid in Bill of Entry or Duty paying document.

Thus you can take drawback of custom portion as per AIR rate as well as credit on IGST paid (as per GST provisions) on inputs used for manufacture of product exported. (Reply dt. 06/07/2018)