Seeks to amend notification G.O. (P) No.66/2017/TAXES, dated 30th June, 2017 - S. R. O. No. 709/2022 - Kerala SGST

GOVERNMENT OF KERALA Taxes (B) Department NOTIFICATION G.O.(P) No.88/2022/TAXES. Dated, Thiruvananthapuram, 18th July, 2022 2nd Karkadakam, 1197 S. R. O. No. 709/2022 In exercise of the powers conferred by clause (ii) of the proviso to sub-section (3) of section 54 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017), the Government of Kerala, on the recommendations of the Council, hereby makes the following further amendments in the notification issued under G.O. (P) No.66/2017/TAXES, dated 30th June, 2017 and published as S.R.O. No. 364/2017 in the Kerala Gazette Extraordinary No. 1354 dated 30th June, 2017, namely :- In the said notification, (i) in the opening paragraph, in the proviso, in clause (i), for the words and figure serial numbers 1 , the words, figure and letters serial numbers 1AA shall be substituted; (ii) in the TABLE, Sl. No. 1 shall be re-numbered as Sl. No. 1AA, and before Sl. No. 1AA as so re-numbered, the following serial numbers and entries shall be inserted, namely :- (1) (2) (3) 1A. 1507 Soya-bean oil and its fractions, whether or not refined, but not chemically modified 1B. 1508 Ground-nut oil and its fractions, whether or not refined, but not chemically modified. 1C. 1509 Olive oil and its fractions, whether or not refined, but not chemically modified. 1D. 1510 Other oils and their fractions, obtained solely from olives, whether or not refined, but not chemically modified, including blends of these oils or fractions with oils or fractions of heading 1509 1E. 1511 Palm oil and its fractions, whether or not refined, but not chemically modified. 1F. 1512 Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified. 1G. 1513 Coconut (copra), palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified. 1H. 1514 Rape, colza or mustard oil and fractions thereof, whether or not refined, but not chemically modified. 1I. 1515 Other fixed vegetable or microbial fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified. 1J. 1516 Vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter- esterified, re-esterified or elaidinised, whether or not refined, but not further prepared. 1K. 1517 Edible mixtures or preparations of vegetable fats or vegetable oils or of fractions of different vegetable fats or vegetable oils of this Chapter, other than edible fats or oils or their fractions of heading 1516 1L. 1518 Vegetable fats and oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516 1M. 2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal 1N. 2702 Lignite, whether or not agglomerated, excluding jet 1O. 2703 Peat (including peat litter), whether or not agglomerated 2. This notification shall come into force on the 18th day of July, 2022. By order of the Governor, RAJESH KUMAR SINGH, Additional Chief 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 State 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 supplies), 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 had notified the goods 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) under clause (ii) of the first proviso to sub-section (3) of the section 54 as per the notification issued under G.O. (P) No. 66/2017/TAXES, dated 30th June, 2017 and published as S.R.O. No. 364/2017 in the Kerala Gazette Extraordinary No. 1354 dated 30th June, 2017. Now, on the recommendation of the Goods and Services Tax Council, the Government of Kerala have decided to notify certain goods 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) under clause (ii) of the first proviso to sub-section (3) of the section 54 amending the above-said notification. The notification is intended to achieve the above object.