Insights
- India has raised duty drawback rates for cotton and blended fibre linens.
- The rate for cotton linens under HSN code 630201 increased from 2.6 per cent to 3 per cent, with the upper cap rising to ₹68.9 per kg.
- For blended fibre linens under HSN code 630202, the rate is up from 2.4 per cent to 2.6 per cent, though the upper cap remains unchanged.
India has increased rates of duty drawback for bed linen, table linen and toilet linen made from cotton and blended fibres. The Department of Revenue under the Ministry of Finance has issued a notification for the same on April 30, 2024. It has also amended few provisions related to upstream products of textile sector.
The department has amended Customs and Central Excise Duties Drawback Rules, 2017 to make provisions more reasonable. Under HSN code 630201, the duty drawback rate has been increased from 2.6 per cent to 3 per cent. The upper cap of duty drawback is also increased from ₹40.5 per kg to ₹68.9 per kg for bed linen, table linen, toilet linen and kitchen linen made of cotton fibre.
India has raised duty drawback rates for cotton and blended fibre linens.
The rate for cotton linens under HSN code 630201 increased from 2.6 per cent to 3 per cent, with the upper cap rising to ₹68.9 per kg.
For blended fibre linens under HSN code 630202, the rate is up from 2.4 per cent to 2.6 per cent, though the upper cap remains unchanged.
As per the notification, the government has increased duty drawback rate from 2.4 per cent to 2.6 per cent on bed linen, table linen, toilet linen and kitchen linen made of blended fibre of man-made fibre and cotton. These products come under HSN code 630202. The department, however, did not increase upper cap of the duty drawback and kept it unchanged.
It has also clarified that the term “counts” wherever used in Chapter 52 shall mean “counts in New English (Ne)”.
Fibre2Fashion News Desk (KUL)
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