The government has approved a new scheme to provide budgetary support to industrial units in hilly states including Jammu and Kashmir and Himachal Pradesh under the GST regime, Union Commerce Minister Suresh Prabhu said today.
"A new scheme of budgetary support under GST regime to the units located in states of Jammu and Kashmir, Uttarakhand, Himachal Pradesh, North East states approved," he said in a series of tweets.
He said the scheme offered as a measure of goodwill to units eligible for drawing benefits under earlier excise duty exemption and refund schemes.
Under the GST regime, there is no provision for exemption but there is one section under the Act which permits refunds.
The minister said that recognising industry's concerns on withdrawal of exemptions, budgetary support for residual period as part reimbursement of GST was provided.
"We are responsive to industry's concerns, shall work together to boost growth, exports, employment," he added.
The Department of Industrial Policy and Promotion (DIPP) in a noitification said that the scheme shall be limited to the tax which accrues to the central government under Central Goods and Service Act, 2017 and Integrated Goods and Services Act, 2017.
"The scheme shall be called Scheme of Budgetary Support under Goods and Services Tax (GST) regime to the units located in state of Jammu and Kashmir, Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim," it said.
It is effective from July 1 this year and shall be valid up to June 30, 2027.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)