Industries to get 10-year tax exemption as refund: Finance Minister
Srinagar: After persistent demand by the industrialists in the state for granting tax exemption in Goods and Services Tax (GST) regime, the Government of India on Wednesday announced that industries in the North Eastern and Himalayan states will continue to get tax exemption till March 2027 as refund.
Finance Minister Arun Jaitley said in New Delhi that within the framework of the GST Act each industry will be entitled to its own refund mechanism during this particular period (March 31, 2027).
He said that industries in the North Eastern and Himalayan states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand will continue to get tax exemption till March 2027, albeit as refund as per the previous excise regime used to get 10-year exemption.
Jaitley announced the decision after a Cabinet meeting headed by Prime Minister Narendra Modi.
Under the new 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 exemptions has been extended to 2027. 4,284 industrial establishments will be entitled to this benefit. Budgetary provision for this is Rs. 27,413 crore,” he said.
Industrialists in Jammu and Kashmir were demanding exemption under GST regime and had held several meetings with the Chief Minister Mehbooba Mufti and Finance Minister Dr Haseeb Drabu.
(With inputs from KNS)