Important Keyword: GST ITC restriction fabrics, inverted duty textile GST, GST refund rules India, Notification 5/2017 amendment, GST textile refund problem,
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[F. No. 354/320/2017- TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 14th November, 2017
Notification No. 44/2017 - Central Tax (Rate): seeks to amend notification no. 5/2017- Central tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding restriction of ITC on certain 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 CGST 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 TABLE, for Sl. No. 6A and the entries relating thereto, the following entries shall be substituted, namely: -
| “6A | 5608 | Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials |
| 6B | 5801 | Corduroy fabrics |
| 6C | 5806 | Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)”. |
2. This notification shall come into force with effect from the 15th day of November, 2017.
(Mohit Tewari)
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. 29/2017-Central Tax(Rate) dated 22nd September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G. S. R. 1191(E), dated the 22nd September, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 44/2017 – Central Tax (Rate)
Q1: What is Notification 44/2017 in GST?
Answer: It restricts ITC refund on certain fabrics.
This notification amends refund rules to limit refund eligibility for specified textile products.
Q2: Does this notification change GST rates?
Answer: No, it does not change rates.
It only restricts refund of ITC, not tax rates.
Q3: What is ITC refund restriction?
Answer: Refund of excess credit is not allowed.
Even if ITC accumulates, it cannot be claimed as refund for certain goods.
Q4: Which sector is mainly affected?
Answer: Textile sector.
Fabric manufacturers and traders are most impacted.
Q5: Why did government restrict ITC refunds?
Answer: To control excessive refunds.
It was done to manage revenue and prevent misuse.
Q6: Can restricted ITC be used later?
Answer: Yes, but only for offsetting output tax.
It cannot be refunded.
Q7: What is inverted duty structure?
Answer: Input tax higher than output tax.
This leads to accumulation of ITC.
Q8: Is this notification still relevant?
Answer: Yes, subject to changes.
It remains important for textile businesses.
Q9: How to check if product is covered?
Answer: Refer to HSN codes listed.
Notification specifies exact categories.
Q10: What happens if wrong refund claimed?
Answer: It may lead to recovery and penalties.
Incorrect claims can attract notices.
Q11: Can exporters claim refund?
Answer: Depends on conditions.
Export rules may differ from domestic supply.
Q12: Who should be careful about this notification?
Answer: Textile manufacturers and traders.
They must plan ITC usage carefully.
Download PDF: Notification No. 44/2017 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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