As a small or medium business owner in India or a startup founder, it’s important to stay up-to-date with the latest regulations and policies, especially when it comes to taxation. One area that you need to be aware of is the AIR rate of duty drawback under the GST framework. In this article, we’ll explain everything you need to know and provide some suggestions on what you can do to take advantage of this policy.
AIR stands for All Industry Rates, and the duty drawback scheme is designed to provide relief to exporters and manufacturers who have to pay duties on imported inputs or pay excise duties on their final products. Essentially, it allows them to claim back some of the duties paid, reducing the overall cost of production and increasing competitiveness.
Under the GST framework, the AIR rate of duty drawback is calculated as a percentage of the GST paid on the inputs used in the manufacture of the exported goods. This rate is determined by the government and is based on the average amount of duties paid on inputs and final products in the industry as a whole.
If you’re an exporter or manufacturer who wants to claim duty drawback under the GST framework, you’ll need to follow these steps:
If you want to take advantage of the AIR rate of duty drawback under the GST framework, here are some suggestions:
The AIR rate of duty drawback under the GST framework is an important policy for small and medium business owners in India and startup founders to be aware of. By understanding how it works and following the steps to claim duty drawback, you can reduce your overall production costs and improve your competitiveness. By following the suggestions outlined in this article, you can maximize your benefits under the policy and stay ahead of the competition.