The Central Board of Excise and Customs (CBEC), vide its circular clarifying the issues related to exports under claim for drawback in the GST scenario, directed its Officials to dispose all pending drawback claims on priority basis and to maintain zero pendency.
This is in the light of queries received by the Board on issues highlighted by field formations and exporters regarding the requirement of a certificate to be obtained from the jurisdictional GST officer prescribed. The certificate aimed to ensure that there was no double neutralisation of taxes by way of credit/refund and drawback. However, in view of factors such as absence of clarity about jurisdictional GST officer, time lag between exports and the requisite returns to be filed under GST laws, etc., the said certificate from GST officer may not be available immediately at the time of export.
As part of audit checks, the need for regular sample checking of the veracity of declarations accepted for disbursing AIR drawback claims has been highlighted in Board’s instruction F. No. 603/01/2011-DBK dated 11.10.2013.
The Board reiterated the said instruction for the purpose of audit checks for self-declarations. Directorate General of Audit (Central Taxes) were also asked to have the declarations given by exporters about nonavailment of ITC/refund etc., in respect of exports under drawback verified at the time of audit of these units/exporters. “These checks will thus ensure that there is no double neutralisation of taxes by simultaneous availment of credit/refund and drawback,” the circular said.
“In order to further facilitate exporters, it may be ensured that all pending drawback claims are disposed of on priority and zero pendency be maintained. Supplementary claims whenever filed should also be processed on priority.”
Read the Full Text of the Circular Below
