Govt extends tax exemption for industry in North East, hilly states

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As many as 4,284 industrial units in North East and Himalayan States will get GST relief in the form of refund of the central share of CGST and IGST.

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its nod for a new scheme to refund the central share of Central GST (CGST) and Integrated GST(IGST) to these units in lieu of the excise exemption that they have lost due to the onset of GST and scrapping of excise laws from July 1 this year.

A budgetary support of Rs. 27,413 crore for this scheme has been approved for the period from July 1,2017 till March 31, 2027, the Union Finance Minister Arun Jaitley told reporters here after a Cabinet meeting.

These 4,284 eligible industrial units were granted excise duty exemption for first ten years after commencement of commercial production under the North East Industrial and Investment Promotion (NEIIPP), 2007 and package for special category states for Jammu & Kashmir, Uttarakhand and Himachal Pradesh to promote industrialisation. “Upon repeal of the central excise duty laws, the Government has decided to refund the central share of CGST and IGST to the affected industrial units for the residual period in the States of North Eastern region and Himalayan States,” Jaitley said.

He said that the Department of Industrial Policy & Promotion (DIPP) will notify the scheme, including detailed operational guidelines for implementation of the scheme within six weeks. So if the Centre say collects Rs. 100 in the form of CGST and IGST, then under this scheme, the aggregate refund will only be Rs.58, being the Centre’s share under the devolution formula approved by the Finance Commission, according to Jaitley.

Read more at: http://www.thehindubusinessline.com/economy/policy/govt-extends-tax-exemption-for-industry-in-north-east-hilly-states/article9819762.ece