The Department of Industrial Policy and Promotion has worked out a scheme to provide a budgetary support of Rs 27,413 crore for 4,284 units located in the Himalayan states from J&K to Northeast for the period from July 1, 2017 till March 31, 2027 to compensate them for losing their excise duty-exempt status post GST implementation from July 1.
The Government has already framed the operational guidelines for the scheme. All eligible units would have to register on the ACES-GST portal and obtain a unique ID, which is to be used for processing of all claims under the scheme.
It is clarified that the scheme - for units based out of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and the North-East, including Sikkim - will be limited to the tax that accrues to the Centre under the Central Goods and Services Act, 2017 and the Integrated Goods and Services Act (IGST), 2017, after devolution of a part of the levy to the States, in terms of Article 270 of the Constitution.
The amount of budgetary support to an eligible unit will be the sum of 58 percent of the CGST paid by the unit after utilisation of the input tax credit of the central tax and integrated tax, and 29 percent of the IGST paid by the unit after utilisation of input tax credit of the central and integrated taxes.
Sources said this the sum of 58 percent has been fixed taking into consideration that the Centre devolves 42 percent of the taxes on goods and services to the States as per the recommendations of the Fourteenth Finance Commission. Though it is significantly less than 100 percent exemption given earlier, something is always better than nothing.
Diwali gift for industries in Himalayan states
By IndianMandarins - 2017-10-10 09:30:32
The Department of Industrial Policy and Promotion has worked out a scheme to provide a budgetary support of Rs 27,413 crore for 4,284 units located in the Himalayan states from J&K to Northeast for the period from July 1, 2017 till March 31, 2027 to compensate them for losing their excise duty-exempt status post GST implementation from July 1.
The Government has already framed the operational guidelines for the scheme. All eligible units would have to register on the ACES-GST portal and obtain a unique ID, which is to be used for processing of all claims under the scheme.
It is clarified that the scheme - for units based out of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and the North-East, including Sikkim - will be limited to the tax that accrues to the Centre under the Central Goods and Services Act, 2017 and the Integrated Goods and Services Act (IGST), 2017, after devolution of a part of the levy to the States, in terms of Article 270 of the Constitution.
The amount of budgetary support to an eligible unit will be the sum of 58 percent of the CGST paid by the unit after utilisation of the input tax credit of the central tax and integrated tax, and 29 percent of the IGST paid by the unit after utilisation of input tax credit of the central and integrated taxes.
Sources said this the sum of 58 percent has been fixed taking into consideration that the Centre devolves 42 percent of the taxes on goods and services to the States as per the recommendations of the Fourteenth Finance Commission. Though it is significantly less than 100 percent exemption given earlier, something is always better than nothing.
