New Delhi, January 25, 2018
Step taken following complaints from exporters after rates were slashed in October
In a relief for exporters, the government has increased the duty drawback rates — the rate of refund for input taxes — on more than a hundred items including bicycles, tyres, marine and seafood, leather products, yarn and handicrafts, after exporters protested over the pruning of rates in October last year.
“As a step towards more efficient input tax neutralisation on the exports, after considering various representations from the trade and industry, the government of India has enhanced the all Industry rates of duty drawback for 102 tariff items,” a release from the Finance Ministry stated.
The Enhanced Rates of Duty Drawback will be effective from 25.1.2018.
The export items covered under the higher rates also include, automobile tyres and bicycle tyres/tubes, yarn and fabric of wool and glass handicrafts.
Exporters were hit by a sharp decrease in duty drawback rates in October on various items following implementation of the Goods and Services Tax (GST) regime. They complained that the revised rates had not included embedded taxes.
[The Hindu Business Line]