The Indian Government has raised the duty drawback rates for various linen products made from cotton and blended fibers. The Ministry of Finance's Department of Revenue issued a notification on April 30, 2024 to outline these adjustments and amendments.

According to the notification, certain revisions have been made under the Customs and Central Excise Duties Drawback Rules of 2017 to enhance the reasonability of provisions. For instance, the duty drawback rate for items like bed linen, table linen, toilet linen, and kitchen linen made from cotton fibers notably, within the HSN code 630201has been raised from 2.6 per cent to 3 per cent. Additionally, the upper cap of duty drawback has been elevated from Rs 40.5 per kg to Rs 68.9 per kg for these specific products.

In parallel, the government has also increased the duty drawback rate from 2.4 per cent to 2.6 per cent for bed linen, table linen, toilet linen, and kitchen linen made from a blend of man-made fibers and cotton, categorised under HSN code 630202. However, there hasn't been a corresponding adjustment to the upper cap of the duty drawback; it remains unchanged.