Units availing tax holiday get jittery about GST

By | October 12, 2016
(Last Updated On: October 12, 2016)

The industrialists who had set up units here from 2003 to 2010 are wary about the implementation of GST. Under the industrial package, the units that came up in Himachal during the period were exempted from Central Excise for 10 years. Many units that started production in 201 0 were exempt from Central Excise Tax till 2020. However, now with the GST coming into force from April 2017 , the industrialists are fearing that their package is being cut short.

Sarwal, who had set up a pharma unit in Golthai, said the government should continue the package till 2020. They had set up units following package given by the government. Under a new legislation, the government could not withdraw the benefit given to them by the previous government.

Rajneesh Vohra, a CA in Una district, said the Centre had proposed that industrialists would initially have to deposit the GST and it be reimbursed to them later. Since the time of reimbursement was not clear, the industrialists are wary. The industrial associations were planning to meet Finance Minister Arun Jaitley , he said.

Sources said many industrialists were contemplating to move court against the decision to bring them under the am bit of GST that would make them liable to pay waived taxes.

The package to Himachal was given by the NDA government led by Atal Behari Vajpayee. The package was given for 10 years ranging from 2003 to 2013. However, owing to pressure from neighbouring Punjab and Haryana, the package was curtailed by the previous UPA government in 2010. However, the industrial units that started production till March 2010 were entitled to tax benefits for 10 y ears.

Since GST was being imposed after the merger of all taxes such as Central Excise, sales tax, entry taxes of states, it would be hard for the units to escape it, sources said. Source – http://www.tribuneindia.com [11-10-2016]

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