Lok Sabha Question No. 564 (STARRED), answered on 2018-04-06
Subject: Tax Rebate for Promotion of Exports
Ministry: FINANCE
Asked by: RADHESHYAM BISWAS

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## STARRED QUESTION NO *564 TO BE ANSWERED ON FRIDAY THE 6 TH  APRIL, 2018

## CHAITRA 16, 1940 (SAKA)

## TAX REBATE FOR PROMOTION OF EXPORTS

## *564. SHRI. RADHESHYAM BISWAS:

- Will the Minister of FINANCE be pleased to state: (a) whether  the  Government  has  made  any  provisions  for  tax  rebate  for  promotion  of exports; (b) if so, the details thereof; the value of rebate provided during the last three years along with the role of the said
- (c) rebate in increasing the exports; and
- (d) the monitoring system in place to ensure proper utilization of the said rebate?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

- (a), (b), (c) and (d): A statement is placed on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO.  *564  RAISED  BY  SHRI  RADHESHYAM  BISWAS  FOR  6 TH   APRIL,  2018 REGARDING TAX REBATE FOR PROMOTION OF EXPORTS

- (a): Yes, Madam. To ensure the competitiveness of goods and services and promote exports, Government had made provisions for rebate of duty under Central Excise law and now for zero  rating  of  exports  under  GST  law.  The  essence  is  to  make  Indian  goods  and  services competitive in the international market by ensuring that taxes do not get added to the cost of exports and taxes are not exported out of India.
- (b): The Government has made provisions for rebate of duty for promotion of Exports under Central  Excise  law.  After  the  roll  out  of  GST  from  1 st of  July,  2017,  provisions  of  rebate under Central Excise are applicable on the following commodities which are currently under Central  Excise,  namely,  Crude,  Motor  Spirit,  Diesel,  ATF  &  Natural  gas  and  tobacco  and tobacco products.

Under GST, Exports and supplies to SEZ are zero rated as per section 16 of the IGST Act, 2017.  By  zero  rating  it  is  meant  that  there  is  no  burden  of  tax  either  on  the  input  side  or output side on exported goods/services. Zero rating of exports and supplies to SEZ is sought to be achieved through the refund mechanism which can be refund of IGST paid on exported goods or accumulated input tax credit, when exported without payment of duty.

(c):  Central Excise: The value of rebate provided during the last three years is as follows,

Central Excise and Service Tax Rebate for Years from 2015-16 to 2017-18 (upto Feb., 2018)

(in Rs Crore)

|   S.No. | Years     | Central Excise Rebate   | Service Tax Rebate   |
|---------|-----------|-------------------------|----------------------|
|       1 | 2015-16   | 23042.19                | 137.00               |
|       2 | 2016-17   | 20596.99                | 96.40                |
|       3 | 2017-18 * | 11223.82 *              | 176.41 *             |

*Note: Figures are provisional.

GST: Refund sanctioned upto the end of 31 st March, 2018

( in Rs Crore)

| Total No. of Shipping Bills (upto 31 st January, 2018)   | Total IGST refund (upto 31 st March, 2018)   | Total ITC refund by Centre (upto 31 st March, 2018)   | Total ITC refund by States (upto 31 st March, 2018)   |
|----------------------------------------------------------|----------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| 2,73,017                                                 | Rs 9,604                                     | Rs. 5,510                                             | Rs 2,502                                              |

Thus, in all, Rs 9,604 crore (IGST refunds), Rs. 5,510 crore (ITC refund by Centre) and Rs 2,502 crore (ITC refund by States) all totalling to Rs 17,616 crore has been sanctioned.

(d):  Rebate  is  given  only  of  the  duty  paid  on  exported  goods  and  as  such  no  further monitoring on utilization of rebate is required as taxes stand paid before sanction of rebate. The event of tax payment is verified before sanction of rebate.