Notification No. 21/2018 – Integrated Tax (Rate) Explained

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Notification No. 21/2018 - Integrated Tax (Rate): Seeks to amend Notification 05/2017-Integrated 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) 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 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 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 unutilised in balance, after payment of tax for and upto 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-Integrated 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. 670(E), dated the 28th June, 2017 and last amended vide notification No. 46/2017-Integrated Tax (Rate) dated 14^th November, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1395 (E), dated the 14^th November, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 21/2018 – Integrated Tax (Rate)

Q1: What is Notification No. 21/2018 – Integrated Tax (Rate)?

Answer:
It amends Notification 05/2017 to restrict refund of accumulated ITC for certain goods from 1 August 2018. 21

Q2: Does this notification change IGST rates?

Answer:
No. It changes refund eligibility, not tax rates.

Q3: From when is ITC refund restricted?

Answer:
For inward supplies received on or after 1 August 2018. 21

Q4: What happens to ITC balance till July 2018?

Answer:
Unutilised ITC balance for specified goods upto July 2018 lapses. 21

Q5: What is Section 54(3) relevance here?

Answer:
Section 54(3) allows refund of unutilised ITC. This notification restricts that benefit.

Q6: Does this apply to exporters?

Answer:
Yes, if goods fall under restricted category.

Q7: Can refund be claimed under LUT instead?

Answer:
Refund of unutilised ITC under LUT may still be subject to restriction if goods are specified.

Q8: How do I check whether my goods are covered?

Answer:
Refer to serial numbers listed in Notification 05/2017 (as amended).
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