The revised rates of duty drawback will help address the concerns of these export sectors and make India's exports more competitive in the global economy," the finance ministry said in a statement. Duty drawback compensates exporters for the duties paid on inputs used to manufacture exported products. Under the pre-GST regime, the government used the duty drawback scheme to refund both excise and customs duties paid on inputs used for exports. However, after the GST was introduced, the government reduced the duty drawback rates and allowed them to be used only for customs duty refunds on inputs used. "The committee recommends that the government provide for a duty drawback rate which would encompass all the taxes including the GST/IGST levied as well as embedded/blocked tax and give a choice to the exporters to either claim the duty drawback or follow the input tax credit route.

Source: The Telegraph January 26, 2018 20:03 UTC