Question32:
The assessee has mistakenly claimed a very small amount from customs for exports as Duty Drawback. However, the assesse wants to claim GST input on purchases for export against LUT because amount of gst rate is huge in comparison to drawback. Is he allowed to claim GST input? If no, can he pay drawback and claim refund for gst input?

Answer
The new All Industry Rate of Duty Drawback w.e.f 01.10.2017 for various export products have been announced vide  NOTIFICATION NO. 89/2017-CUSTOMS (N.T.) DT. 21.09.2017. Only the custom duty is now being refunded in drawback rate.
If you claimed drawback according to the new AIR rate then there is no problem in claiming refund of GST portion.
But if the drawback is claimed before 01.10.2017 for the total amount (with no ITC claim ) then to claim refund of GST you should first to return back the amount of drawback with interest. If the drawback is returned with interest then it is equivalent to not claiming drawback.  (Reply dt. 06/4/2018)