The Government has announced new duty drawback rates, and several products have seen significant increases in these rates.
Cotton T-shirts now have a drawback rate of 3.1 % up from the previous 2.1 %. Rates for man-made T-shirts have also increased by 0.5 % and there’s a slight bump for babies’ garments, both blended and cotton.
Additionally, there have been noteworthy changes in the drawback value cap per unit. For babies’ garments, the cap is now set at Rs. 29.4, up from the earlier Rs. 13. Similarly, for blended babies’ garments, the cap has increased from Rs. 6 to Rs. 12.5.
This revision comes after more than three years, as the last update was made on January 28, 2020. The Department of Revenue, Ministry of Finance, Government of India, has recently issued a notification to revise the Drawback schedule, which will be effective from October 30, 2023.
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