Companies are struggling to get refunds under the goods and services tax (GST) system in hilly areas, more so in Jammu and Kashmir.
While they are getting only 29 per cent of the integrated GST (IGST) on inter-state movements of goods as refund, unlike 100 per cent of the excise tax in the pre-GST regime in hilly areas, the issue has become more contentious in Jammu and Kashmir because the units there were exempt from the service tax on inputs too.
Also, procedural issues are not letting them get even 29 per cent refunds in J&K and other hilly states,