associate sponsors

Havells
HDFC

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

New Delhi: Industries in the north eastern and Himalayan states will continue to get tax exemption till March 2027, albeit as refund, under the current GST regime which was rolled out on 1 July, Finance Minister Arun Jaitley said on Wednesday.

File image of Finance Minister Arun Jaitley. AFP

File image of Finance Minister Arun Jaitley. AFP

"Within the framework of the GST Act each industry will be entitled to its own refund mechanism during this particular period (31 March, 2027)," he said after the Cabinet meeting headed by Prime Minister Narendra Modi.

Industries in the north eastern and Himalayan states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand under the previous excise regime used to get 10-year exemption, he said.

As per the scheme, industries which commenced operations during the period got excise tax holiday for 10 years, he said, adding that there is a separate residuary period for every industry because of commencement of production and their consequent entitlement of 10 year exemption.

Under the new Goods and Services Tax (GST) regime, there is no provision for exemption but there is one section under the Act which permits refunds.

"Therefore, refund would be permitted through DBT. The sunset clause of these exemption has been extended to 2027. 4,284 industrial establishment will entitled to this benefit. Budgetary provision for this Rs 27,413 crore," he said.


Updated Date: Aug 16, 2017 17:01 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See