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[F. No.334/1/2017 -TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 28th June, 2017
Notification No. 15/2017 - Central Tax (Rate): To notify the supplies not eligible for refund of unutilized ITC under CGST Act
GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R......(E).- In exercise of the powers conferred by 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 notifies that no refund of unutilised input tax credit shall be allowed under sub-section (3) of section 54 of the said Central Goods and Services Tax Act, in case of supply of services specified in sub-item (b) of item 5 of Schedule II of the Central Goods and Services Tax Act.
2. This notification shall come into force with effect from the 1st day of July, 2017.
(Ruchi Bisht)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 15/2017 – Central Tax (Rate)
Q1: What is Notification 15/2017 in GST?
Answer: It restricts ITC refund.
It disallows refund of unutilized ITC for specified construction-related services.
Q2: Which services are covered?
Answer: Construction services.
Specifically those under Schedule II, item 5(b).
Q3: Can ITC still be claimed?
Answer: Yes, ITC is allowed.
Only refund of ITC is restricted.
Q4: What is unutilized ITC?
Answer: ITC not used against output tax.
Occurs when input tax is higher than output tax.
Q5: Why refund is restricted?
Answer: To prevent revenue loss.
Government restricts certain sectors.
Q6: Does this apply to all industries?
Answer: No, specific sectors.
Mainly construction-related services.
Q7: Can builders claim refund?
Answer: No, generally not.
Refund of ITC is restricted.
Q8: What is Schedule II in GST?
Answer: Defines supply type.
It classifies goods vs services.
Q9: Is this still applicable?
Answer: Yes, unless amended.
Always check latest updates.
Q10: What happens if refund claimed wrongly?
Answer: Demand may arise.
Incorrect claims lead to penalties.
Q11: Does this affect cash flow?
Answer: Yes, significantly.
Blocked ITC impacts working capital.
Q12: Is export covered here?
Answer: No, exports are separate.
Exports are zero-rated.
Q13: What is inverted duty structure?
Answer: Input tax > output tax.
Refund allowed in some cases, but not here.
Q14: Can ITC lapse?
Answer: It may remain unused.
But not refundable in this case.
Q15: Where to get GST help?
Answer: Expert support helps.
Many businesses rely on professionals.
Download PDF: Notification No. 15/2017 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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