To notify the supplies not eligible for refund of unutilized ITC under IGST Act

Last updated: 26 July 2021

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This notification from the Ministry of Finance clarifies that refunds for unutilised Input Tax Credit (ITC) under the IGST Act will not be permitted for certain supplies of services. Specifically, this applies to services listed in sub-item (b) of item 5 of Schedule II of the Central Goods and Services Tax Act, 2017. This change came into effect from 1st July 2017.

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Notification No. 12/2017-Integrated Tax (Rate)

New Delhi, the 28th June, 2017

G.S.R......(E).- In exercise of the powers conferred by clause (xiii) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with 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 hereby notifies that no refund of unutilised input tax credit shall be allowed under clause (xiii) of section 20 of the said Integrated Goods and Services Tax Act, read with sub-section (3) of section 54 of the said Central Goods And Services Tax Act, in case of supply of services specified in sub-item (b) of item 5 of Schedule II of the Central Goods and Services Tax Act, 2017.

2. This notification shall come into force with effect from the 1st day of July, 2017. [F. No.334/1/2017 -TRU] (Ruchi Bisht) Under Secretary to the Government of India

FAQ :

This notification informs businesses that refunds for unutilised Input Tax Credit (ITC) under the IGST Act are not allowed for specific supplies of services.

The notification affects supplies of services specified in sub-item (b) of item 5 of Schedule II of the Central Goods and Services Tax Act, 2017.

This notification came into effect on 1st July 2017.

No, a refund of unutilised input tax credit is not allowed under the IGST Act for the specified supplies of services.

Notification No : 12/2017-Integrated Tax (Rate)
Source : https://cbic-gst.gov.in/pdf/integrated-tax-rate/Notification12-IGST.pdf

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