Is there any draft provision to clarify the same?
Industries currently enjoying the area based exemptions of Central Excise duty are still in dark over the continuation of benefit in GST regime. Is there any draft provision to clarify the same?
Industrial units in the specified areas will need to pay the duties first and get a refund later. This is to ensure that the credit chain in the GST regime is not disturbed. The government, however, has decided not to accept the Thirteenth Finance Commission’s recommendation that these exemptions be replaced by a new system of cash subsidy, official sources said. The government believes that cash subsidy is not ‘sound economics.’ The policy stance is clear: area-based exemptions are being phased out, but units set up on the promise that the bounty would be available for them for specified periods cannot be duped.