Notification No. 29/2017 – UTGST Rate Explained

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Notification No. 29/2017 - Union Territory Tax (Rate): Seeks to amend notification no. 5/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics.

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 21 of the Union Territory Goods and Services Tax Act, 2017 (14 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-Union Territory 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. 714(E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, after S. No. 6 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:-

“6A

5801

Corduroy fabrics.”.

(Mohit Tewari)
Under Secretary to the
Government of India

Note: - The principal notification No.5/2017-Union Territory 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. 714(E), dated the 28th June, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 29/2017 - Union Territory Tax (Rate)

Q1. What is Notification No. 29/2017 – UTGST Rate?

Answer:
It is a GST notification issued on 22 September 2017 that amended Notification No. 5/2017-UTT(R).
The notification added corduroy fabrics under HSN 5801 to the list of goods where refund of accumulated ITC is restricted.

Q2. Which product is covered under this notification?

Answer:
The notification specifically covers corduroy fabrics.
These fabrics fall under tariff heading 5801.

Q3. Does the notification remove ITC eligibility?

Answer:
No.
The notification restricts refund of accumulated ITC. It does not automatically remove eligibility to claim input tax credit itself.

Q4. What is an inverted duty structure?

Answer:
An inverted duty structure occurs when GST paid on inputs is higher than GST charged on outward supplies.
This results in accumulation of ITC.

Q5. Why was refund restricted?

Answer:
The restriction was introduced to implement GST Council decisions relating to refund management in specific sectors including textiles.

Q6. Does the restriction apply to all textile products?

Answer:
No.
The notification specifically added corduroy fabrics under tariff heading 5801. Other products must be examined separately.

Q7. Is HSN classification important?

Answer:
Absolutely.
Incorrect classification may result in incorrect refund claims and GST disputes.

Q8. Can businesses still use accumulated ITC?

Answer:
Subject to GST provisions, accumulated credit may remain available for utilization against eligible GST liabilities.
The restriction primarily concerns refund eligibility.

Q9. Which law allows such restrictions?

Answer:
Section 54(3) of the CGST Act empowers the Government to notify goods where refund of accumulated ITC shall not be available.

Q10. Does this affect exporters?

Answer:
Exporters should carefully examine specific GST provisions applicable to their transactions because export-related refunds operate under separate rules in certain situations.

Q11. What is the biggest business impact?

Answer:
The biggest impact is often on working capital.
Businesses may experience accumulation of credit without corresponding refund availability.

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