Refund of service tax to exporters through the Indian Customs EDI System (ICES) - Schedule of Rates and application form for claiming the refund notified

A simplified scheme for electronic refunds of service tax to exporters vide has been introduced by the CBEC vide Circular No. 149/18/2011-ST dated 16.12.2011 on the lines of duty drawback.  In the new scheme, exporters will have to either opt for electronic refund through ICES system, which is based on the 'schedule of rates' or go for refund on the basis of documents, by approaching the Central Excise/Service Tax formations.

Notification No. 52/2011 ST dated 30.12.2011 has been issued to provide for the conditions and the procedure of granting such refund.  The Notification also sets out the ‘Schedule of Rates’ for goods of a class or description.  An exporter will calculate the refund of service tax paid on the specified services by applying the rate specified for the goods exported by him, in the Schedule, as a percentage of the FOB value of the said goods.

The old procedure for grant of refund prescribed vide Notification 17/2009-ST dated 07.07.2009 has been dispensed with.  Notification No. 52/2011 has superseded Notification No. 17/2009.

 [Notification No. 52/2011 ST dated 30.12.2011]