The Government of India (GoI) will refund Bhutan an excise duty claim of Nu 2.6bn for the year 2017. The agreement was signed in Thimphu yesterday.
The refund of excise duty has decreased by Nu 1.3bn as compared to 2016. The decrease by 34 per cent is attributed to the introduction of Goods and Services Tax in India.
Excise duty is an indirect tax levied on goods and commodities manufactured domestically in India. The Government of India refunds the excise duty on an annual basis as per article 8 of the Bilateral Trade and Transit Agreement between Bhutan and India.
