higher duty drawback and gst refund

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01.01.2021, Auto population of E-Invoice details in GSTR-1/2A/2B/4A/6A, Online communication on GST portal | Facility between Supplier and Recipient, Uploading Show Cause Notice and Order on GST Portal is Mandatory | SCN and order sent via email only is invalid, Analysis of New RBI Monetary Policy, 2020 & few recent changes by RBI. Goods and Services Tax /Harmonized Sales Tax (GST/ HST) cannot be refunded by drawback. Hence Applicant is eligible for refund in excess of drawback claimed. The refund payment will only be available via EFT regardless of lodgement . Where the drawback rates are the same, it represents only the Customs elements, which did not get subsumed in the GST and thus, the writ­applicant cannot be said to have availed double benefit i.e. A number of exporters were not aware of the implications and chose to be compensated for input taxes under the duty drawback scheme. 1.7.2017 to 30.9.2017 (Circular No.22/2017-Customs dated 30.6.2017). 20126 of 2018], the Gujarat High Court (‘HC’) has ruled that claim of duty drawback is not a valid reason for unreasonably withholding IGST refunds. 9. In the aforesaid context, the respondents have fairly conceded that the case of writ- applicant is not falling within sub-clauses (a) and (b) respectively of clause (4) of Rules 96 of the Rules 2017. Goods entered for domestic consumption on which a refund of excise duty can be claimed include goods: Goods entered for domestic consumption on which a refund of excise duty can be claimed include goods: Consideration of Provision for bad & doubtful debts as operating expenses in computation of PLI, Benefit of Filing Income Tax Return for an individual and HUF, Due Date Compliance Calendar January 2021, Corporate Compliance Calendar for January 2021, Join Online Certification Courses on GST covering recent changes, Applicability of Cash Flow Statement, CARO (2016 & 2020) & Internal Financial Control, Income Tax Calculator for Financial Year 2020-21 for Individuals, ICAI request for further extension of TAR/ITR due dates, CA Association Criticised Action & Policies of FMO after insufficient due date extension, Representation for further extension of CFSS 2020, Request for extension of Company Fresh Start Scheme 2020. We are availing duty drawback in the lower rate (from 1/7/2017 onwards), earlier. Therefore, the petitioner is not entitled to refund. 37/2018-Customs, dated 9-10-2018. They stated that the petitioner has claimed a higher duty drawback. However, this facility of claiming drawback is available to the exporters only up to 30 th September 2017 because as Sub: Clarification regarding exports under claim for drawback in the GST scenario. statute. However, as the Taxpayer exports the supplies outside of India, the supplies are eligible to be considered as ‘Zero Rate Supply’ in accordance with Section 16 of the IGST Act. the HC, it has been clarified that the IGST refunds legal position is needed to Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. Related to these two cases, the division bench under Justice M. Govindaraj also made their decision in favor of the petitioner. This facility will enable a taxpayer (whether supplier or recipient) to send a message to another registered person (whether supplier or recipient) through the GST portal itself. To facilitate the provision of ITC and refund allowed. In short, a supplier availing drawback of inly basic customs duty shall be eligible for refund of unutilized ITC. Further, the intention of the CBIC and GST authorities Duty Drawback provisions are made to grant rebate of duty or tax chargeable on any imported / excisable materials and input services used in the manufacture of export goods. The technicalities of the new rules clearly showcase that, claiming for the benefits of the IGST law was a wise idea. I have heard the submissions. case of M/S. option. And they needed to consider the Shipping Bills as an application for the taxpayers’ IGST refund. In the Happy to Share for the benefit of all, that today in the matter of Petitioner is M/s Precot Meridien Limited. The GST provides for a refund mechanism of unutilized ITC accumulated on account of GST rate on inputs being higher than the GST rate on output supplies. According to GST Law, the following provisions would apply under the GST regime for the deemed exports in relation to the refund of the Terminal Excise Duty (TED) and Drawback (DBK). Rule 96(4) makes it abundantly clear that the claime for refund can be withheld only in two circumstances as provided in sub-clauses (a) and (b) respectively of clause (4) of Rule 96 of the rules, 2017. As per the policy decision taken by the Government of India, exporters availing higher rate of duty drawback may not be eligible for refund of IGST on exports. It does not constitute professional advice or recommendation of firm. The Taxpayer is registered under the GST law. Blog » Circular can not prevail over the statute, HC allows IGST refund where higher rate of drawback claimed. The respondents are given liberty to adjust the amount already availed by the petitioner on account of higher rate of duty drawback and pay the balance of IGST payable to petitioner within six weeks from the date of receipt of a copy of this judgment. Refund of ITC shall not be allowed if supplier of goods/services avails of drawback in respect of CGST or claims refund of IGST paid on such supplies. are explained here. Circular No. No double benefit. court restated the fact that-. You can’t claim a refund of Goods and Services Tax (GST) in a duty drawback claim. When analyzing the case, the Madurai bench of Madras Court clarified that the only condition the statute offers for IGST refunds on exports is that the shipping has to be made after paying the tax. All Rights Reserved. Introduction: IGST refund inspite of duty drawback on higher rate. 5. For instance, the IGST refunds can The proper officer of Customs determines that the goods were exported in violation of the provisons of Custom Act,1962. In case of M/s. Several goods exporters across the country could not avail of their ITC refund for a period of July 17 to September 17. Circular No 37/2018-Customs. 1. Who is required to  Generate E-invoice? It has been noted that exporters had availed the option to take drawback at higher rate in place of IGST refund out of their own Considering the fact that exporters have made aforesaid declaration while claiming the higher rate of drawback, it has been decided that it would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback.There is no justification for re … In order to claim refund, the Shipping Bill filed the Taxpayer shall be deemed to be an application for refund of IGST, as per Rule 96 of the. See the definition of' 'refund… No double benefit. The single bench under Justice M. Govindaraj made their decision in the case of M/S Precot Meridian Limited vs. After hearing the counsel on the adjustment, the Court has suggested refund of IGST after adjusting the higher rate of duty drawback availed by the petitioner without refunding IGST … 20126 of 2018], Circular No.37/2018 – Customs dated 9 October 2018, G NXT POWER CORP VS UNION OF INDIA (WP (C) No 2981 of 2019 (W) dated 29, Company Law Compliances for newly incorporated Private Company, Applicability of GST on Remuneration to Director, Recent Changes in GST due to Corona Lockdown, CBIC notifies Due date and relaxations for filing GSTR-3B, CBIC clarified certain issues related to refund under GST, Denial of IGST refund for export goods through Foreign Post Offices, Financial assistance received in lieu of services to be provided by Indian subsidiary company to holding company in Germany is a supply of service, Transitional Credit- HC explains implication of directions to ‘consider’ a case, Webinar on Career Growth in Litigation Mgmt & IDT (GST) – Best Practices, All about Aadhaar Authentication for Existing GST Taxpayers, Section 44AD not eligible on Interest/Remuneration Income of Partner from partnership firm, AIFTP request for further extension of Income-tax due dates. 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