After GST was introduced, the government pared the duty drawback rates as exporters were supposed to claim refunds after paying taxes. Accordingly, a parliamentary panel has asked the finance ministry to allow exporters to use the old system of refunds through the so-called duty drawback scheme. Under the duty drawback scheme in the pre-GST era, exporters could claim rebates on taxes such as service tax and excise duty. After GST was introduced, the government pared the duty drawback rates as exporters were supposed to claim refunds after paying taxes. They don’t want to get into the process of first paying duties and then seeking GST refunds.

Source: Mint November 29, 2017 19:18 UTC