Notification No 5/2017 Central Tax (Rate) : Goods for which No refund of unutilised ITC allowed u/s 54(3) CGST Act Dated  28th June 2017

By | June 29, 2017
(Last Updated On: August 4, 2018)

Notification No 5/2017 Central Tax (Rate)

Summary of Notification No 5/2017 Central Tax (Rate) 

Notification No 5/2017 – Central Tax (Rate) Dated  28th June 2017 Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed under section 54 (3) of CGST Act 2017   As amended by Notification No 29/2017 Central Tax Rate Dated 22nd September 2017 ,  Notification No 44/2017 Central Tax (Rate) Dated 14th November, 2017 and Notification No 20/2018 Central Tax (Rate) Dated 26th July, 2018

Circular No 48/22/2018 GST issued on 14.06.2018 : Fabric processors shall be eligible for refund of unutilized ITC on account of inverted duty structure under section 54(3) of the CGST Act even if the goods (fabrics) supplied to them are covered under notification No. 5/2017-Central Tax (Rate) dated 28.06.2017. ]

Notification No 5/2017 Central Tax (Rate)

(Department of Revenue)
Notification No.5/2017-Central Tax (Rate)

New Delhi, the 28th June, 2017

G.S.R. (E).- In exercise of the powers conferred by clause (ii) of the proviso to 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 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).

1 [Provided that,—

(i) nothing contained in this notification shall apply to the input tax credit accumulated on supplies received on or after the 1st day of August, 2018, in respect of goods mentioned at serial numbers 1, 2, 3, 4, 5, 6, 6A, 6B, 6C and
7 of the Table below; and

(ii) in respect of said goods, the accumulated input tax credit lying unutilised in balance, after payment of tax for and upto the month of July, 2018, on the inward supplies received up to the 31st day of July 2018, shall lapse.]


S.No.Tariff item, heading, sub- heading or ChapterDescription of Goods
1.5007Woven fabrics of silk or of silk waste
2.5111 to 5113Woven fabrics of wool or of animal hair
3.5208 to 5212Woven fabrics of cotton
4.5309 to 5311Woven fabrics of other vegetable textile fibres, paper yarn
5.5407, 5408Woven fabrics of manmade textile materials
6.5512 to 5516Woven fabrics of manmade staple fibres
2[6A5608Knotted netting of twine, cordage or rope; made up fishing nets
and other made up nets, of textile materials
6B5801Corduroy fabrics
6C5806Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)]
7.60Knitted or crocheted fabrics [All goods]
8.8601Rail locomotives powered from an external source of electricity or by electric accumulators
9.8602Other rail locomotives; locomotive tenders; such as Diesel-electric locomotives, Steam locomotives and tenders thereof
10.8603Self-propelled railway or tramway coaches, vans and trucks, other than those of heading 8604
11.8604Railway or tramway maintenance or service vehicles, whether or not self-propelled (for example, workshops, cranes, ballast tampers, trackliners, testing coaches and track inspection vehicles)
12.8605Railway 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)
13.8606Railway or tramway goods vans and wagons, not self-propelled
14.8607Parts of railway or tramway locomotives or rolling-stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof
15.8608Railway 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


(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 (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.

Notes on Amendment in Notification No 5/2017 Central Tax (Rate)

2 Sl. Nos. 6A to 6C substituted for Sl. No. 6A by Notification No. 44/2017-Central Tax (Rate), dated 14-11-2017, w.e.f. 15-11-2017. Earlier, Sl. No. 6A was inserted by Notification No. 29/2017-Central Tax (Rate), dated 22-9-2017, w.e.f. 22-9-2017.

1.  Inserted by Notification No. 20/2018-Central Tax (Rate), dated 26-7-2018, w.e.f. 26-7-2018.

Download Complete Notification No 5/2017 – Central Tax (Rate) Dated  28th June 2017

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