Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is”Drawback”.
So what do you mean by”Drawback”?
Section 2(42) of CGST Act, 2017 –“drawback” in relation to any goods manufactured in India and exported,means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods;
Conclusion:
Hence it is understood that refund of duties especially on an imported product subsequently exported or used to product a product for export.is known “Drawback”