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We refer to the DGFT PN 27 dated 23rd October 2024 prescribing annual RoDTEP return and suggesting that RoDTEP claims in excess of actual duties/taxes/levies actually paid will be required to be surrendered by the exporters. As we understand, the RoDTEP rates are based on, besides other data submitted by various exporters, the cost of transportation of inputs and export products from/to the port. We are located far away from the port and so such costs in our case are bound to be higher than that of the exporters closer to the port. So, our claims based on the RoDTEP rates determined as an average of duties/taxes/levies borne by a cross section of exporters are also likely to be lower than the actual duties/taxes/levies paid by us. Will we be allowed to claim the difference between the actual duties/taxes/levies paid by us and the actual amount of our RoDTEP claims?
The DGFT PN referred above only talks of surrendering any duty credits claimed in excess of the duties/taxes/levies actually paid but it does not talk of giving you any duty credits in case the duties/taxes/levies actually paid exceed the amount of duty credits claimed under the RoDTEP scheme.
We have received drawback against certain shipments where we have realised the payment after the initial 9 months period allowed by RBI. Are we required to surrender the drawback amount?
No, so long as the bank has credited the amount of export proceeds in your account and has marked off the entry in the EDPMS and regularised the matter by granting an extension in the period for realisation of export proceeds. You may generate the BRC for the payment received and submit the same along with the extension letter to the Customs, if they demand surrender of the drawback amount.
We refer to the Kerala High Court judgement in the case of Sance Laboratories Pvt. Ltd., [WP(C) NO. 17447 OF 2023] striking down Rule 96(10) of the CGST Rules, 2017 as ultra vires Section 16 of the IGST Act, 2017. We are not located in the jurisdiction of the Kerala High Court. Can we use this judgement to contest the demands based on this judgement?
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Yes. Exporters, who are not within the jurisdiction of the Kerala High Court, can take a plea based on the ratio of this case, to contest rejection orders of refund claims or recovery proceedings of refund granted. However, please note that the government may appeal against this judgement to the Supreme Court.
Under Merchanting Trade Transactions (MTT) can we remit payment for the import leg before we receive payment for the export leg or before shipment has been made?
Yes. However, the entire MTT must be completed within nine months from the date of shipment or import leg payment whichever earlier. Also, the outlay of foreign exchange should not exceed beyond four months, i.e. the export leg receipt must be within four months from the date of import leg payment.
Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in
Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in
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