Amendment to Section 54 of the Central Goods and Services Tax Act
The amendment to Section 54 of the Central Goods and Services Tax Act introduces two key changes. First, it removes the second proviso in sub-section (3). This change simplifies the provision, although the specifics of the omitted proviso are not detailed in the text. Second, a new sub-section (15) is added after sub-section (14) and before the Explanation section. This new sub-section specifies that there will be no refund of unutilized input tax credit or integrated tax paid on zero-rated supplies of goods if those goods are subject to export duty. Essentially, this means that if goods are exported and they incur export duty, businesses cannot claim a refund for the input taxes paid on those goods. This amendment impacts exporters by clarifying the conditions under which tax refunds are not permissible, particularly focusing on scenarios involving export duties. These changes are likely aimed at preventing double benefits where taxes are refunded even when export duties are levied on goods.
Note: It is an AI generated summary for reference purpose only.
Amendment of section 54.
128. In section54oftheCentralGoodsandServicesTaxAct,––
(b)aftersub-section(14)andbeforetheExplanation,thefollowing sub-section shall be inserted, namely:––
“(15) Notwithstanding anything contained in this section, no refund of unutilised input tax credit on account of zero rated supply of goodsorofintegratedtaxpaidonaccountofzeroratedsupplyofgoods shall be allowed where such zero rated supply of goods is subjected to export duty.”.
