The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given its approval to the scheme of providing budgetary support under Goods and Service Tax (GST) regime for eligible industrial units located in Jammu & Kashmir, Uttarakhand, Himachal Pradesh, and the north eastern states including Sikkim, an official CCEA statement reads.
Budgetary support of Rs 27,413 crore for the scheme has been approved for the period from July 1 2017 till March 31 2027 for such industrial units located in these states which availed the benefit of Central Excise exemption prior to coming into force of GST, it said.
“The Government of India was implementing North East Industrial and Investment Promotion Policy (NEIIPP), 2007 for the north eastern states including Sikkim and package for Special Category states for Jammu & Kashmir, Uttarakhand and Himachal Pradesh to promote industrialisation. 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, CCEA has added, the government has decided to pay a budgetary support equal to the central share of the cash component of CGST and IGST paid by the affected eligible industrial units. The support shall be available for the residual period (ten years from the date of the commercial production) in the states of the north eastern region and Himalayan states. DIPP will notify the scheme, including detailed operational guidelines for implementation of the scheme within six weeks.
The government estimates that 4,284 units located in the Jammu & Kashmir, Uttarakhand, Himachal Pradesh and the north eastern states including Sikkim will benefit from the scheme.