By Fast Kashmir on 16/08/2017. No Comments

Tax exemption to continue till March 2027

SRINAGAR, AUGUST 16: Chief Minister, Mehbooba Mufti has welcomed the extension in tax exemption announced today by the Centre for the industries in Jammu and Kashmir.
The Chief Minister said the extension in tax exemption would go a long way in promoting industrial growth and economic development in the State.
The extension in tax exemption for industries in J&K and other hilly states till March 2027 was announced by the Union Finance Minister, Arun Jaitley today after the decision was approved by the Union Cabinet which met in New Delhi this morning under the chairmanship of Prime Minister Narendra Modi.
Mehbooba specially thanked the Prime Minister Narendra Modi and the Union Finance Minister, Arun Jaitley for having taken personal and keen interest in ensuring continuation of tax exemption to the industries in Jammu and Kashmir for another 10 years.
Meanwhile, Minister for Finance Dr Haseeb Drabu has also welcomed the extension in tax exemption for the industries in Jammu and Kashmir, which he said would be paid as a refund under the present Goods and Services Tax (GST) regime.
Hailing the Centre’s decision, Dr Drabu said the State Government would within the next fortnight work out the exact modalities and incentive structure that will benefit local industry, investors and consumers. “The new incentive structure will protect the local industry and benefit local customers,” he said.
He said the State Government, under Chief Minister Mehbooba Mufti, is committed to incentivize the industries but the tax and fiscal incentives should be given in such a manner that it promotes greater employment and higher value addition.
Pertinently, Union Finance Minister Arun Jaitley today announced in New Delhi that the industries in J&K, the north eastern states and other Himalayan states will continue to get tax exemption till March 2027, albeit as refund, under the current Goods and Services Tax (GST) regime which was rolled out on July 1.
“Within the framework of the GST Act each industry will be entitled to its own refund mechanism during this particular period (March 31, 2027),” Jaitley said after the Union 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.
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 exemption has been extended to 2027. 4,284 industrial establishment will entitled to this benefit. Budgetary provision for this Rs 27413 crore,” he said.