GST exemption to Industries in Hill and North east till 2027

New Delhi Aug 16: A relief was given today. Union Cabinet chaired by Prime Minister Narendra Modi has extended the exemptions to industries in the north eastern and Himalayan states will continue to get tax exemption until March 2027, albeit as refund under the current GST regime.

Finance Ministry Arun Jaitley has briefed the media regarding the cabinet decisions and said that "within the framework of the GST Act each industry will be entitled to its own refund mechanism during this particular period (March 31, 2027),"

He has also said that "Industries in the north eastern and Himalayan states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand under the previous excise regime used to get a 10-year exemption and there is a separate residuary period for every industry because of commencement of production and their consequent entitlement of 10-year exemption".

Finally, he said that "there is no provision for exemption under GST but there is one section of the Act which permits refunds.Therefore, the refund would be permitted through DBT. The sunset clause of these exemption has been extended to 2027. 4,284 industrial establishment will be entitled to this benefit. Budgetary provision for this Rs. 27,413 crore".