Recently the GST authorities found that exporters are misusing the government’s duty drawback scheme (DDS) by claiming it along with refunds of integrated goods and services tax (GST).
Details –
Over 100 such exporters mainly in apparel, drugs, and leather have been “illegally” drawing benefits from two routes.
What is the Duty drawback scheme?
- Under this scheme, exporters are provided with a refund of customs duty paid on unused imported goods, or goods that will be treated, processed or incorporated into other goods for export.
- Claims must be lodged within 4 years from the date the goods were exported.
- Duty drawback can be only claimed for compensating unrebated taxes and duties, not for GST.
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