GST
Higher duty drawback and IGST refund
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Customs has clarified that exporters who claim drawback at the higher rate, which includes a component for central taxes, are not eligible for the IGST refund on the same export. Check the latest customs circular and drawback schedule.
Provisions and law
- Rule 96, CGST Rules 2017Shipping bill is deemed a refund application for IGST paid on exported goods once the EGM and a valid GSTR-3B are filed
- Customs drawback rules and CBIC customs circularsHigher drawback rate with central tax component bars IGST refund on the same goods
Analysis
Choose at the shipping bill stage: lower drawback plus IGST refund, or the higher drawback without it. If you claimed higher drawback by mistake, you may need to repay the difference to get IGST refund. Ask your CHA to declare correctly.
Conclusion
- Check the drawback rate claimed in each shipping bill.
- Decide the route before filing.
- If wrong, approach customs to correct and repay the excess drawback.
- Then follow up the IGST refund.
A Savvy can do this for you
Refund of IGST paid on export of goods via shipping bill
₹4,999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.