(Service provider charges service tax from exporter and deposits it to government)

In this case,rebate is available in form of refund for specified services used in Export


Specified service means

In case of excisable goods

taxable services that have been used beyond the place of removal, for the export of said goods


in the case of goods other than excisable goods

taxable services used for the export of said goods;


but shall not include any service mentioned in sub-clauses (A), (B), (BA) and (C) of rule 2(l) of the CENVAT Credit Rules, 2004.

(It means those service which are not categorized as Input Service like Service Related to Employee,Work Contract,Construction Service etc)



Examples of Services which are normally covered for Rebate are

  • Clearing and forwarding agents services
  • Courier services
  • Custom house agents services
  • Insurance business services in relation to General Insurance
  • Port services
  • Storage and Warehousing services




The exporters now have a choice to opt either of the following options:

Electronic rebate through ICES system ,

 which is based on the notified ‘schedule of rates’ on the lines of duty drawback, or


Rebate on the basis of documents ,

by approaching the Central Excise/Service Tax formations.


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.