No refund of unutilised input tax credit Sec. 54(3)(ii). - G.O. (P) No. 66/2017/TAXES - Kerala SGST

GOVERNMENT OF KERALA Taxes (B) Department NOTIFICATION G.O.(P) No.66/2017/TAXES Dated, Thiruvananthapuram, 30 th June., 2017 ....Mithunam, 1192 .....Ashadha, 1939 S.R.O.No.............../2017.- In exercise of the powers conferred by clause (ii) of the first proviso to sub-section (3) of section 54 of the Kerala Goods and Services Tax Ordinance, 2017 (11 of 2017) , the Government of Kerala, on the recommendations of the Council, hereby notifies the goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, heading, sub-heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table, in respect of which no refund of unutilised input tax credit shall be allowed, where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on the output supplies of such goods (other than nil rated or fully exempt supplies),- TABLE Sl.No. Tariff item, heading, sub-heading or Chapter Description of Goods (1) (2) (3) 1 5007 Woven fabrics of silk or of silk waste 2 5111 to 5113 Woven fabrics of wool or of animal hair 3 5208 to 5212 Woven fabrics of cotton 4 5309 to 5311 Woven fabrics of other vegetable textile fibres, paper yarn 5 5407, 5408 Woven fabrics of manmade textile materials 6 5512 to 5516 Woven fabrics of manmade staple fibres 7 60 Knitted or crocheted fabrics [All goods] 8 8601 Rail locomotives powered from an external source of electricity or by electric accumulators 9 8602 Other rail locomotives; locomotive tenders; such as Diesel-electric locomotives, Steam locomotives and tenders thereof 10 8603 Self-propelled railway or tramway coaches, vans and trucks, other than those of heading 8604 11 8604 Railway or tramway maintenance or service vehicles, whether or not self-propelled (for example, workshops, cranes, ballast tampers, trackliners, testing coaches and track inspection vehicles) 12 8605 Railway or tramway passenger coaches, not self-propelled; luggage vans, post office coaches and other special purpose railway or tramway coaches, not self-propelled (excluding those of heading 8604) 13 8606 Railway or tramway goods vans and wagons, not self-propelled 14 8607 Parts of railway or tramway locomotives or rolling-stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof 15 8608 Railway or tramway track fixtures and fittings; mechanical (including electro-mechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the foregoing Explanation . (1) In this Table, tariff item , sub-heading , heading and Chapter shall mean respectively a tariff item, sub-heading, heading or chapter, as specified in the First Schedule to the Customs Tariff Act, 1975 (Central Act 51 of 1975) . (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 , including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 2. This notification shall come into force with effect from the 1st day of July, 2017. By order of Governor, MINHAJ ALAM' Secretary to Government Explanatory Note (This does not form part of the notification, but is intended to indicate its general purport.) As per the first proviso to sub-section(3) of section 54 of the Kerala Goods and Service Tax Ordinance, 2017(11 of 2017) , no refund of unutilised input tax credit shall be allowed in cases other than, (i) zero-rated supplies made without payment of tax; (ii) where the credit rate has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempted suppliles), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council. Accordingly the Government of Kerala on recommendations of the council has decided to exempt notify the goods in respect of which no refund of unutilised unput tax credit shall be allowed, where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on the output supplies of such goods(other than nil rated or fully exempt supplies) under clause (ii) of the first proviso to sub-section(3) of the section 54 . This notification is intended to achieve the above object.