Notification No. 23/2023 IT(R): ITC Refund Allowed

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Notification No. 23/2023 - Integrated Tax (Rate): Seeks to Amend Notification No 05/2017- Integrated Tax (Rate) Dated 28.06.2017

[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 CGST Act, 2017 (12 of 2017) read with section 20 of the IGST 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 28^th 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 28^th 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 20^th day of October 2023.

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 28^th day of June, 2017, and was last amended by notification No. 9/2022 – Integrated Tax (Rate), dated the 13^th 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 13^th July, 2022.

📚 Frequently Asked Questions (FAQs): Notification No. 23/2023 - Integrated Tax (Rate)

Q1: What is Notification No. 23/2023 – Integrated Tax (Rate) about?

Answer:
This notification permits the refund of input tax credit (ITC) on metallised polyester film or plastic film used in the manufacturing of imitation zari thread or yarn (HSN Code 5605). This entry is added under S. No. 6AA of Notification 5/2017 – Integrated Tax (Rate), and is effective from 20th October 2023.

Q2: What does “imitation zari thread or yarn” mean under this notification?

Answer:
Imitation zari refers to synthetic decorative threads made from metallised polyester film or plastic film, widely used in embroidery and garment manufacturing. This notification applies specifically to these materials.

Q3: Can businesses claim GST refunds under this notification?

Answer:
✅ Yes. The refund is allowed on the input tax credit paid specifically on metallised polyester film or plastic film used to manufacture imitation zari yarn.

Q4: Which HSN code is applicable under this amendment?

Answer:
The applicable HSN code is 5605, which covers "Imitation zari thread or yarn made out of metallised polyester film or plastic film."

Q5: From when is Notification No. 23/2023 effective?

Answer:
The notification is effective from 20th October 2023.

Q6: Was the original Notification 5/2017 – Integrated Tax (Rate) amended earlier?

Answer:
Yes. The original notification dated 28th June 2017 has been amended multiple times, the most recent prior amendment being Notification No. 9/2022 – Integrated Tax (Rate) dated 13th July 2022.

Q7: Who can benefit from this notification?

Answer:
Manufacturers and exporters of imitation zari yarn who utilize metallised polyester/plastic film as a raw material and are eligible to claim ITC refund under Section 54 of the CGST Act, 2017.

Q8: How does this amendment impact textile and handicraft industries?

Answer:
🧵 This change boosts liquidity for textile exporters and manufacturers by enabling faster ITC refunds on essential raw materials, improving cost-efficiency in production.

Q9: What is the procedure for claiming ITC refund under this notification?

Answer:
Eligible taxpayers should file for a refund under Section 54 of CGST Act, following the standard refund procedure through the GST portal. You can seek professional help from GST Experts at www.Finodha.in.

Q10: Where can I file GST returns or register for GST?

Answer: You can easily file returns or register for GST online via Finodha's services:
🔹 GST Registration – https://finodha.in/online-gst-registration/
🔹 GST Return Filing – https://finodha.in/gst-return-filing/
🔹 GST Compliance – https://finodha.in/gst-compliance/

🎯 Benefits of This Notification:

🎁 Focused benefit to imitation zari manufacturers

💸 Refund streamlining for polyester film inputs

📈 Boost to MSME & handicraft exporters

🤝 Aligned with GST Council recommendations

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