New Delhi, August 16 2017: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi today has given its approval to the scheme of providing Budgetary Support under Goods and Service Tax Regime for the eligible industrial units located in the States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim.
Budgetary support of Rs 27,413 crore for the said scheme has been approved for the period from July 1, 2017 till March 31, 2027 for such industrial units located in aforesaid States which availed the benefit of Central Excise exemption prior to coming into force of GST regime.
The Government of India was implementing North East Industrial and Investment Promotion Policy (NEIIPP), 2007 for North Eastern States including Sikkim and package for Special Category States for Jammu & Kashmir, Uttarakhand and Himachal Pradesh to promote industrialization.
One of the benefits of the NEIIPP, 2007 and package for Special Category States was excise duty exemption for first 10 years after commencement of commercial production.
Upon repeal of the Central Excise duty laws, the Government has decided to refund the central share of CGST and IGST to the affected eligible industrial units for the residual period in the States of North Eastern region and the Himalayan States.
DIPP will notify the Scheme, including detailed operational guidelines for implementation of the scheme within 6 weeks.
It is estimated that a total number of 4284 eligible units located in these States will be benefited from the scheme.
Source: The Sangai Express