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) reduced the tax rebates under the Duty Drawback Scheme for the following items:

  • The rebate rate on silver jewelry and other silver articles has been reduced from INR 4085.9 per kg of silver content to INR 3733.3.
  • The rebate rate on gold jewelry has been reduced from INR 276.6 per gram of gold content to INR 261.5.
  • The rebate on exports of typewriters and word-processing machines of 2% has been withdrawn. Further, a rebate of 1% on exports of parts of such machines has also been withdrawn.
  • The rebate rate on tufted carpets and other textile floor covering of man-made fibers has been decreased from INR 44.8 to INR 43.4 per square meter if CENVAT credit is availed.
  • The rebate rate on felt carpets and textile floor coverings of man-made fibers has been decreased from INR 31.5 to INR 30.5 per sq. meter if CENVAT credit is availed.
    The rebate rate on other carpets and textile floor coverings of man-made fibers has been decreased from INR 14.2 to INR 13.7 per sq. meter if CENVAT credit is 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

272 Carpets & other textile floor coverings
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.
382 Jewellery & related articles
7113 Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal.
711311 Of silver, whether or not plated or clad with other precious metal
711319 Of other precious metal, whether or not plated or clad with precious metal
7114 Articles of goldsmiths' or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal.
711411 Of silver, whether or not plated or clad with other precious metal
451 Office & accounting machinery and its accessories
8469 Typewriters other than printers of heading 84.43; word processing machines.
846900 Typewriters other than printers of heading 84.43; word processing machines.

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