The Ministry of Finance, Department of Revenue, Government of India, has released a crucial notification, No. 20/2023-Central Tax (Rate), dated 19th October, 2023. This notification brings amendments to the Central Goods and Services Tax (CGST) rates, based on the recommendations of the Council. The changes affect the taxation of specific goods, with a focus on imitation zari thread or yarn made from metallized polyester/plastic film. In this article, we will examine the details of this notification and its implications.
Detailed Analysis:
1. Amendment Summary: Notification No. 20/2023-Central Tax (Rate) is issued under the powers conferred by clause (ii) of the proviso to sub-section (3) of section 54 of the Central Goods and Services Tax Act, 2017. It amends the existing notification No.5/2017-Central Tax (Rate), dated 28th June, 2017, as published in the Gazette of India. The focus of this amendment is the taxation of imitation zari thread or yarn made from metallized polyester/plastic film.
2. Amendments Introduced: The notification introduces a new entry, S. No. 6AA, to the existing notification. This entry specifies that it applies for the refund of input tax credit but only on polyester film/plastic film. It essentially narrows down the applicability of tax rates for imitation zari thread or yarn, making it clear that the refund is restricted to polyester/plastic film.
3. Effective Date: Notification No. 20/2023-Central Tax (Rate) takes effect from the 20th day of October, 2023. This is an important date for businesses and manufacturers dealing with imitation zari thread or yarn to ensure compliance with the updated tax regulations.
Conclusion:
Notification No. 20/2023-Central Tax (Rate) signifies a significant shift in the taxation of specific goods, particularly imitation zari thread or yarn made from metallized polyester or plastic film. The amendments clarify that the refund of input tax credit is limited to polyester film/plastic film used in the manufacturing of imitation zari thread or yarn.
This notification reflects the government’s commitment to maintaining transparency and efficiency in taxation, ensuring that tax regulations are clear and specific. Businesses involved in the production and trade of imitation zari thread or yarn must adapt to these changes to remain compliant with the law. Staying informed about these amendments is essential for businesses to navigate the evolving landscape of tax regulations and continue their operations without disruptions.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 20/2023-Central Tax (Rate) | Dated: 19th October, 2023
G.S.R. 783(E).- In exercise of the powers conferred by clause (ii) of the proviso to sub-section (3) of section 54 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), notification No.5/2017-Central Tax (Rate), dated the 28th day of June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 677(E), dated the 28th June, 2017, namely :-
In the said notification, in the TABLE, after S. No. 6A and the entries relating thereto, following S. No. and the entries shall be inserted, namely:-
| (1) | (2) | (3) |
| “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”; |
2.. This notification shall come into force with effect from the 20th day of October, 2023.
[F. No. CBIC-190354/195/2023-TO(TRU-II)-CBEC]
Vikram Wanere
Under Secretary
Note: – The principal notification No.5/2017-Central Tax (Rate), dated the 28th day of June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 677(E)., dated the 28th day of June, 2017, and was last amended by notification No. 9/2022 – Central Tax (Rate), dated the 13th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 559(E)., dated the 13th July, 2022.
