On the 19th of October, 2023, the Ministry of Finance, Department of Revenue, Government of India, issued Notification No. 23/2023-Integrated Tax (Rate). This notification introduces significant amendments to the taxation framework established by the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017. In this article, we will provide an in-depth analysis of these amendments and their implications.
Detailed Analysis:
1. Introduction of Serial Number 6AA: A new serial number 6AA is introduced in the TABLE of the notification. This entry addresses “Imitation zari thread or yarn made out of Metallised polyester film /plastic film.” Importantly, this entry applies exclusively for the refund of input tax credit on polyester film/plastic film used in the production of imitation zari thread or yarn.
2. Scope and Impact: The introduction of serial number 6AA provides clarity and specificity regarding the taxation and refund of input tax credit related to imitation zari thread or yarn production. This amendment is essential for businesses and manufacturers involved in this industry.
3. Effective Date: The tax changes outlined in this notification will be effective from the 20th of October, 2023. It is crucial for businesses and taxpayers to adapt to these new tax regulations promptly to ensure proper adherence and to avoid potential legal or financial repercussions.
Conclusion:
Notification No. 23/2023-Integrated Tax (Rate) issued by the Ministry of Finance, Department of Revenue, Government of India, brings significant amendments to the taxation framework established by the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017. This notification introduces a new entry, serial number 6AA, specifically addressing the taxation and refund of input tax credit related to imitation zari thread or yarn made out of Metallised polyester film/plastic film. This entry applies solely to polyester film/plastic film used in the production of imitation zari thread or yarn.
Effective from the 20th of October, 2023, it is imperative for businesses, manufacturers, and taxpayers involved in this industry to understand and comply with the new tax regulations. Staying informed and adapting to these changes is crucial to ensure smooth operations and to avoid potential legal or financial complications.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 23/2023- Integrated Tax (Rate) | Dated 19th October, 2023
G.S.R. 784(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) read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 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), No. 5/2017-Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 670(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-190354/1 95/2023-TO(TRU-II)-CBEC]
Vikram Wanere
Under Secretary
Note: – The principal notification No.5/2017- Integrated 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. 670(E)., dated the 28th day of June, 2017, and was last amended by notification No. 9/2022 – Integrated 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. 560(E)., dated the 1 3th July, 2022.
