Page 81 - Chemexcil NEWS August - September 2017 for web

including companies in Chemicals industry. The council has been consistently taking up this issue with
the Government.

However, pursuant to this Gujarat Government Order, the Natural Gas supplier shall charge and collect
tax at the rate of 6 % (six percent) on sales of natural gas from consumers of the State except for those
purchasing natural as for use in generation of electricity or for the manufacture of fertilizer. Further, the
Gas supplier shall charge and collect full tax as applicable on the sales in the course of interstate trade
or commerce and shall not be entitled to the remission on such sales.

To make the change operational, the Natural Gas consumers in Gujarat shall submit undertaking to the
Natural Gas supplier to avail the benefit of reduced VAT rate of 6%.

The relevant members are requested to take note of this positive development. The Gujarat Government
order is available for download on below link-

https://www.commercialtax.gujarat.gov.in/vatwebsite/download/cir_noti/NOTI/Remission%20of%20
Tax%20on%20Natural%20Gas.pdf

Thanking You,

NOTICE 19

EPC/LIC/DBK_2017 25th Sept 2017

To,
ALLTHE MEMBERS OFTHE COUNCIL

Subject:- All Industry Rates of Duty Drawback 2017

Dear Members,

Kindly note that Ministry of Finance, Department of Revenue, GOI has notified All Industry Rates of
Duty Drawback 2017.

In this regard, Government has issued Circular No. 38/2017-Customs F. No. 609/76/2017-DBK
dated 22/09/2017 and Notification No. 88/2017-Customs (N.T.) dated 21.9.2017 and Notification No.
89/2017-Customs (N.T.) dated 21.9.2017 respectively, regarding changes in the Customs and Central
Excise Duties Drawback Rules, 2017 and Changes in All Industry Rates (AIRs).

For the sake of convenience, important points are highlighted as follows:

• DBK Rates for majority of items under CHEMEXCIL Purview i.e. Chapter 29, 32, 33, 34 & 38 remain
at 1.5%. DBK Rates of Chapter 28 item rates reduced to 1.1%.

• Definition of Drawback has been amended to provide for drawback of Customs and Central Excise
duties excluding integrated tax and compensation cess leviable. References to input services and
ServiceTax have been omitted.

• The Composite rates of Drawback are being discontinued w.e.f. 1.10.2017. Hence, the composite
rates and Notes and Conditions pertaining to CENVAT credit, rebate of Central Excise duty, etc.
stand omitted.Thus, the declaration required to be given by an exporter for claiming composite rate
of drawback w.e.f. 1.7.2017 as per Circular no. 32/2017-Customs dated 27.7.2017 is no longer required
w.e.f. 1.10.2017;

79 August-September-2017