IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 15 Jan 2017 | Removal date: open ended
Still in force

Tax-based export incentive

On 12 January 2017, the Indian Ministry of Finance through Notification No. 3/2017 - Customs (NT) increased the tax rebates under the Duty Drawback Scheme for the following items:

  • The description for drawback on HS 1211 has been amended to include chilled and frozen plants and parts of plants in addition to fresh or dried ones.
  • The rebate rate cap on certain silk fabrics has been increased from INR 90 per kg. to INR 354 per kg. if CENVAT input credit is not availed by the exporter and from INR 76 to INR 305.3 per kg. if CENVAT credit is availed.
  • The rebate rate on knotted carpets and other textiles floor coverings of man-made fibres has been increased from 8.9% with a cap of INR 618 per sq.meter to 9.2% and a cap of INR 639 per sq. meter if CENVAT credit is not availed. The rebate if CENVAT credit has been taken then the rebate rates have increased from 1.6% and a cap of INR 111.1 per sq. meter to 1.7% and a cap of INR 118.1.
  • The rebate rate on woven carpets and other textile floor coverings of man-made fibres has been increased from 8.9% to 9.2% if CENVAT credit is not availed. While the rate has increased from 1.6% and a cap of INR 50.2 per sq meter to 1.7% and INR 51.6 per sq. meter.
  • The rate on cotton garments and clothing for babies' has been increased from 7.3% with a cap of INR 29 per piece to 7.6% with a cap of INR 30 per piece if CENVAT credit is not availed. If CENVAT credit has been availed, the rates are increased from 1.8% and a cap of INR 7.2 to 1.9% and a cap of INR 7.5 per piece.
  • Rebate of 2% has been introduced on exports of LED lamps
  • Rebate of 1.5% has been introduced on exports of monopods, bipods, tripods, and similar articles
  • The rebate rate on tufted, felt & other carpets and textile floor coverings of man-made fibres has been increased from 8.9% to 9.2% if CENVAT credit is not availed

CENVAT credit is an input credit made available against input duties, such as excise duties and service taxes levied by the state, paid by manufacturers.

The Duty Drawback Scheme aims to provide a rebate of taxes paid on raw materials, indigenous or imported, to manufacture export goods and is calculated as a percentage of the value of the goods exported.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

019 Forage; natural rubber; living plants; raw vegetable materials
1211 Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered.
121190 Other
265 Woven fabrics of natural non-cotton fibres
5007 Woven fabrics of silk or of silk waste.
500720 Other fabrics, containing 85 % or more by weight of silk or of silk waste other than noil silk
272 Carpets & other textile floor coverings
5701 Carpets and other textile floor coverings, knotted, whether or not made up.
570190 Of other textile materials
5702 Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including “Kelem”, “Schumacks”, “Karamanie” and similar handwoven rugs.
570232 Of manmade textile materials
570242 Of manmade textile materials
570292 Of manmade textile materials
5703 Carpets and other textile floor coverings, tufted, whether or not made up.
570330 Of other manmade textile materials
5704 Carpets and other textile floor coverings, of felt, not tufted or flocked, whether or not made up.
570490 Other
5705 Other carpets and other textile floor coverings, whether or not made up.
570500 Other carpets and other textile floor coverings, whether or not made up.
282 Wearing apparel, except fur apparel
6111 Babies' garments and clothing accessories, knitted or crocheted.
611120 Of cotton
6209 Babies' garments and clothing accessories.
620920 Of cotton
465 Electric filament or discharge lamps; lighting equipment; parts
8539 Electric filament or discharge lamps, including sealed beam lamp units and ultraviolet or infrared lamps; arclamps.
853939 Other
483 Optical instruments & photographic equipment; parts thereof
9006 Photographic (other than cinematographic) cameras; photographic flashlight apparatus and flashbulbs other than discharge lamps of heading 85.39.
900691 For cameras

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