Tax benefit cloud over plants in Northeast, hilly states

Manufacturing units in Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Northeastern states enjoyed 100% central excise exemption prior to the GST roll-out

Manufacturing units in the hilly and northeastern states have been left perplexed by the ambiguity over the continuation of tax benefits under the goods and services tax (GST) regime.

A reduction of 42 per cent in the tax benefit, the unavailability of an appeals mechanism, and the restriction on refunds for job work cost are the key concerns of the industry. Tax experts say the current scenario would make manufacturing unattractive in these states.

The Department of Industrial Policy and Promotion (DIPP) issued guidelines a few days back, notifying that tax benefits would be extended to industrial units in these states by