GST update on availment of SGST credit along with drawback facility

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SOY P ITTY on 21 Apr, 2016 wrote:

YOU SIR IS A GREAT PERSON TO SERVE WITH OUT ANY SINGLE PENY. AND YOUR ADVICE RELATED EXCISE AND SERVICE TAX IS VERY VALUABLE FOR GRADUATE/POST GRADUA ...
hitesh on 03 Apr, 2016 wrote:

THANK U SIR 4 UR REPLY ON RATE OF INTEREST
hitesh on 20 Mar, 2016 wrote:

Thank u sir for ur reply regarding ssi exemption limit.
visuiyer on 09 Mar, 2016 wrote:

the budget analysis is really superb... and has highlighted all the aspects.. Hats off Sir ji..
hitesh on 06 Mar, 2016 wrote:

THANK U SIR FOR YOUR REPLY REGARDING THE TARIFFS I ASKED
hitesh on 29 Feb, 2016 wrote:

THANK U SIR FOR GUIDING ME IN THE QUERY OF REFUND.I M THANKFULL TO U.
Abhimanyu Singh on 08 Feb, 2016 wrote:

GST should be passed in this budget. all parties should help in public benefit. Opposition of the party in this regard is not good.
CA R P Vijay on 04 Jan, 2016 wrote:

Thanks and we also wish you and your family a very happy and prosperous new year.
Rahul Singhvi on 04 Jan, 2016 wrote:

Thank you for your lovely greetings ! Wishing you & your family a very happy & fun filled New Year
O V Srinivasan on 04 Jan, 2016 wrote:

We from Gokak Textiles limited wish you and your team a very happy and prosperous New Year 2016.

GST update on availment of SGST credit along with drawback facility

GST update on availment of SGST credit along with drawback facility

At present, exporters are being allowed to claim drawback in relation to any goods manufactured in India and exported, of the duty or tax, as the case may be, chargeable on any imported materials or excisable materials used or taxable services used as input services in the manufacture of such goods. Furthermore, as per Circular No. 22/2017-Customs dated 30.06.2017, the benefit of drawback facility has been extended transitionally upto 30.09.2017. Moreover, it has also been clarified that the condition for availing the benefit of drawback without availing the facility of cenvat implies that the input tax credit of CGST and IGST or the inputs and input services used in the manufacture of export goods has not been availed. Now, the question that arises is that if an assessee opts for the benefit of availing full rate of drawback without availing the benefit of cenvat facility, whether he can avail the credit of SGST paid by him on the inputs or input services procured for the purpose of export of goods?

In this regard, the amendment made vide Notification No. 58/2017-Cus (N.T.) dated 29.06.2017 is worth noting wherein under Rule 3 of the Customs, Central Excise Duties and Service Tax Drawback Rules, the reference of CGST Act, 2017 and IGST Act, 2017 has only been made and not the SGST Act, 2017. Not only this, the drawback is being granted to the exporters only with respect to taxes/duties levied by the Central Government and not for the taxes/duties levied by the State Government. This is also clear from the name of the Rules as ‘Customs, Central Excise Duties and Service Tax Drawback (Amendment) Rules, 2017’ that the drawback is granted only for central taxes levied on inputs/input services. It is also pertinent to mention that the Circular No. 22/2017-Customs dated 30.06.2017, even clarifies that post 30.09.2017, drawback will be available only of Customs portion. Therefore, in our opinion, during the transitional phase from 01.07.2017 to 30.09.2017, exporters will be able to avail the benefit of full rate of drawback along with input tax credit of SGST.

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