Background:
The GST Council in its 50th meeting, inter alia recommended to reduce GST on imitation zari thread or yarn known by any name in trade parlance from 12% to 5% and to regularize payment of GST related during the past period on “as is basis”.
The CBIC vide Notification 09/2023- Central Tax (Rate) dated July 26, 2023 made the appropriate changes in Notification No. 01/2017- Central Tax (Rate) dated June 28, 2017 (“the Goods Rate Notification”) as per recommendation of the 50th GST Council meeting.
Notification:
Now, the CBIC vide Notification 20/2023-Central Tax (Rate) dated October 19, 2023 inserted the S. No. 6AA after S. No. 6A in the Notification 05/2017-Central Tax (Rate) dated June 28, 2017 which read as follows:
|
S. No. |
Tariff item, heading, sub-heading or Chapter | Description of Goods |
| 6AA | 5605 |
Imitation zari thread or yarn made out of Metallised polyester film /plastic film; Explanation: This entry shall apply for refund of input tax credit only on polyester film /plastic film”; |
Further, the CBIC vide Notification No. 23/2023- Integrated Tax (Rate) dated October 19, 2023 made similar changes in Notification No.5/2017- Integrated Tax (Rate), dated June, 28 2017.
The Notification will be made effective from October 20, 2023.
Similar notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009901/ENG/Notifications
IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009910/ENG/Notifications
UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009919/ENG/Notifications
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