Amendment of section 16

In force As on 08 Oct 2026

Ministry Finance Cited by 1 provision

Section 123 of the Finance Act, 2021 deals with amendment of section 16. Integrated Goods and Services Tax Amendment of section 16.

Integrated Goods and Services Tax
Amendment of section 16.
123. In the Integrated Goods and Services Tax Act, 2017 (13 of 2017), in section 16,––
(a) in sub-section (1), in clause (b), after the words "supply of goods or services or both", the words "for authorised operations" shall be inserted;
(b) for sub-section (3), the following sub-sections shall be substituted, namely:––
"(3) A registered person making zero rated supply shall be eligible to claim refund of unutilised input tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder, subject to such conditions, safeguards and procedure as may be prescribed:
Provided that the registered person making zero rated supply of goods shall, in case of non-realisation of sale proceeds, be liable to deposit the refund so received under this sub-section along with the applicable interest under section 50 of the Central Goods and Services Tax Act within thirty days after the expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 (42 of 1999) for receipt of foreign exchange remittances, in such manner as may be prescribed.
(4) The Government may, on the recommendation of the Council, and subject to such conditions, safeguards and procedures, by notification, specify––
(i) a class of persons who may make zero rated supply on payment of integrated tax and claim refund of the tax so paid;
(ii) a class of goods or services which may be exported on payment of integrated tax and the supplier of such goods or services may claim the refund of tax so paid.".
Section 123, The Finance Act, 2021.

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Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

Referred to by 1

s. 1 Short title and commencement

Questions about Section 123

What does Section 123 of the Finance Act deal with?

Section 123 of the Finance Act is headed "Amendment of section 16". Integrated Goods and Services Tax Amendment of section 16.

How do I find court cases under Section 123 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2021 123, section 123 Finance Act 2021, section 123 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 123 of the Finance Act, and has it changed?

Its own text turns on Central Goods and Services Tax Act 50 (Interest on delayed payment of tax), Central Goods and Services Tax Act 54 (Refund of tax), section 16 (Amendment of section 45), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.

When was the Finance Act enacted?

Finance Act was enacted in 2021. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

Fourth Schedule. Fourth Schedule26628 words
First Schedule. First Schedule9574 words
2. Income-tax5993 words
6. Amendment of section 103582 words
130. Substitution of new section for section 43513 words
131. Substitution of new section for section 52699 words

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(a)		in sub-section (1), in clause (b), after the words "supply of goods or services or both", the words "for authorised operations" shall be inserted;
(b)		for sub-section (3), the following sub-sections shall be substituted, namely:––
		"(3) A registered person making zero rated supply shall be eligible to claim refund of unutilised input tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder, subject to such conditions, safeguards and procedure as may be prescribed:
		Provided that the registered person making zero rated supply of goods shall, in case of non-realisation of sale proceeds, be liable to deposit the refund so received under this sub-section along with the applicable interest under section 50 of the Central Goods and Services Tax Act within thirty days after the expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 (42 of 1999) for receipt of foreign exchange remittances, in such manner as may be prescribed.
		(4) The Government may, on the recommendation of the Council, and subject to such conditions, safeguards and procedures, by notification, specify––

(i)		a class of persons who may make zero rated supply on payment of integrated tax and claim refund of the tax so paid;
(ii)		a class of goods or services which may be exported on payment of integrated tax and the supplier of such goods or services may claim the refund of tax so paid.".