After Assam, GST sops to woo investment set for a comeback in other states

The Assam Industries Scheme, 2017, notified on January 19 this year, allows eligible units reimbursement of state GST after utilisation of the input tax credit of available SGST and integrated GST

A recent notification by the Assam government announcing a scheme for reimbursement of tax paid by state-based industries has been akin to setting the proverbial cat among the pigeons. Tax experts expect the move to trigger a race among other states to offer similar sops to woo investment.

While the goods and services tax (GST) Council has left it to each state to come out with individual schemes for reimbursing industries that enjoyed various area-based exemptions or incentives, the sops by Assam government queers the pitch by extending these sops to new industries and those expanding their existing units. 

The