Summary of No Refunds for Polyester Film in Imitation Zari Yarn
GST Notification No 20/2023- CTR has been issued for No Refunds for Polyester Film in Imitation Zari Yarn. Government has clarified that No refund on Polyester film or Plastic film used in preparation of imitation Zari thread or Yarn under inverted duty structure with effect from 20-10-2023.
| Serial No | Product Description | HS | Form of Sale | Remarks |
| 6AA | Imitation Zari Thread/Yarn | 5605 | Made from metallised polyester film/plastic film | Explanation: This Entry shall apply for refund of input tax credit only on polyester film/ plastic film |
Notification No 05/2017-CTR dated 28-06-2017states that No refund of unutilized ITC is available where rate of Tax on input is more than rate of tax on output. Government has insert the above entry of 6AA for imitation Zari thread or Yarn made out of Metalised polyester film/plastic with explanation.
Explanation of the above entry says that the refund is not allowed on purchase of polyester film or plastic film in the preparation of imitation Zari thread or Yarn with effect from 20-10-2023.
Example: If imitation Zari thread or Yarn made out of 4 different things. Out of 4 if one is Polyester film then refund will not be allowed on Polyester film or Plastic film from 20-10-2023. On remaining 3 Items refund will allowed if it not fall under the Notification No 05/2017 Crieteria.
