CBIC Inserts New Entry for Imitation Zari Thread or Yarn Made from Metallised Polyester Film/plastic Film; Applies ITC Refund

The Central Board of Indirect Taxes and Customs (CBIC), introduced a new entry for Imitation Zari Thread or Yarn Made from Metallised Polyester Film/plastic Film. It was stated that this entry applies to the Input Tax Credit (ITC) refund.

Exercising 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), the Central Government, on the recommendations of the Council, made 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.

 As per the new amendment, after 6A new entries shall be inserted, namely:- 

“6AA.   5605 Imitation zari thread or yarn made out of Metallised polyester film /plastic film; “

In  explanation, it was stated that “This entry shall apply for refund of input tax credit only on polyester film /plastic film”; 

 The notification with new entry shall come into force with effect from the 20th day of October 2023.

The new entry was inserted to the principal notification No.5/2017-Central Tax (Rate), dated the 28th day of June 2017, and 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 day of June 2017.

 The same amendments have been added to the integrated tax rate, vide notification no. 21/2023 by amending Notification no. 2/2017 Integrated Tax (Rate), dated the 28^th June, 2017.

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