Notification No. 20/2018 – Central Tax (Rate) Explained

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Notification No. 20/2018 - Central Tax (Rate): Seeks to amend Notification No 05/2017-Central Tax (Rate),dt. 28-06-2017 to give effect to the recommendations of the GST Council in it's 28th meeting held on 21.07.2018

GST: [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R. (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), No.5/2017-Central 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. 677(E), dated the 28th June, 2017, namely:-

In the said notification, in the opening paragraph the following proviso shall be inserted, namely:-

“Provided that,-

nothing contained in this notification shall apply to the input tax credit accumulated on supplies received on or after the 1^st day of August, 2018, in respect of goods mentioned at serial numbers 1, 2, 3, 4, 5, 6, 6A, 6B, 6C and 7 of the Table below; and

in respect of said goods, the accumulated input tax credit lying unutilized in balance, after payment of tax for and up to the month of July, 2018, on the inward supplies received up to the 31^st day of July 2018, shall lapse.”.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

Note: - The principal notification No.5/2017-Central Tax (Rate), dated the 28th 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 June, 2017 and last amended vide notification No. 44/2017-Central Tax(Rate) dated the 14^th November, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1390(E), dated the 14th November, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 20/2018 – Central Tax (Rate)

Q1: What is Notification No. 20/2018 – Central Tax (Rate)?

Answer:
It is a GST notification issued on 26 July 2018 restricting refund of accumulated ITC and causing lapse of certain credits from 1 August 2018.