Important Keyword: Notification 46/2017 IGST, textile GST refund restriction, inverted duty structure GST India, fabric GST ITC refund, GST textile sector India,
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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. 46/2017 - Integrated 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 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 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 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-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. 29/2017-Integrated 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. 1194(E), dated the 22nd September, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 46/2017 — Integrated Tax (Rate)
Q1: Does Notification 46/2017 block ITC completely?
Answer: No, ITC is allowed but refund is restricted.
Businesses can still claim ITC in books, but cannot get refund in certain cases.
Q2: What is inverted duty structure?
Answer: Input tax > Output tax.
This leads to accumulation of ITC, which may or may not be refundable.
Q3: Which fabrics are covered under restriction?
Answer: Specific HSN-based fabrics.
Includes corduroy, narrow woven fabrics, and certain nets.
Q4: Can exporters claim refund?
Answer: Depends on structure.
If covered under restriction, refund may not be allowed under inverted duty.
Q5: Why did government restrict refund?
Answer: To prevent misuse.
Also to reduce revenue leakage.
Q6: Is this applicable to all textile goods?
Answer: No.
Only specific items mentioned in notification.
Q7: What happens to accumulated ITC?
Answer: It remains unused.
Unless adjusted against future output tax.
Q8: Is this still applicable today?
Answer: Yes, subject to updates.
Always check latest notifications.
Q9: Can ITC be carried forward?
Answer: Yes.
It can be used against future liability.
Q10: What if wrong refund is claimed?
Answer: It can be recovered.
With interest and penalties.
Q11: How to avoid issues?
Answer: Proper classification and tracking.
Regular compliance checks are important.
Q12: Does this impact pricing?
Answer: Yes.
Blocked ITC increases cost.
Q13: Who should be careful?
Answer: Textile manufacturers and exporters.
They face maximum impact.
Download PDF: Notification No. 46/2017 — Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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