Refunding Central GST or Goods and Services Tax proposal in India has been made. And this proposal on refund of CGST is only on products that manufacture in excise free zones. Actually in India there are some excise free zones where top companies manufacture their goods. Moreover recently there has been proposal to refund Central Goods and Services Tax in these excise free zones.
Benefits to FMCG, auto and pharma companies
Apart from above things Expenditure Finance Committee or EFC approved this new proposal. And if cabinet gives final approval then many companies benefit in future. Whereas these companies are pharmaceutical and automobile companies.
Plus FMCG or fast moving consumer goods also benefit from central GST proposal. Because their companies are in excise free zones in India.
Excise free zones in India
While these excise free zones are North East, Himachal Pradesh and Uttarakhand. Besides this proposal will be before the cabinet in near future. On other hand if this proposal passes then many companies like Dabur, Cipla, TVS Motor and Dr. Reddy’s will benefit.
It is so because all these companies invested in North East, Uttarakhand or in Himachal Pradesh. And their reason for investment was for tax break. So if cabinet passes this proposal then it benefits many companies like the ones stated above.
List of companies in excise free zones
Some of the companies that are in excise free zones are Dabur, Cipla, Wockhardt, Johnson & Johnson and Dr. Reddy’s. Additionally other companies that have plants in these regions are Lloyd, TVS Motor and TAFE among other companies.
Many of above companies have plants in Himachal Pradesh. While on other hand other cement sector industries have their plants in North East India.
You may also know about HSN code list for GST India. These HSN codes help you to file GST returns as well. So on whole it becomes easy for you to file GST tax.
Tax incentives for the states
As many of you know there are many tax incentives for excise free zones. One of them is North East India. If you invest in these areas then you get benefits of excise free regions. However with implementation of GST on 1 July 2017 all these exemptions are no longer valid.
But authorities made a proposal for part refund of Central Goods and Services Tax or CGST. It is so because this plan helps many people and especially companies. While now this proposal of refund of Central GST in excise free zones will go to Union Cabinet for final approval.
Idea of this refund proposal came after Government of India thought about excise exemption. This however applies only to special category states. So you now have to wait for some time before Union Cabinet tells final decision on refund policy applicable in Himachal Pradesh, North East and Uttarakhand.
Exemptions under GST tax
As a matter of fact under GST there are only some exemptions. As GST Council and Government of India aimed at making common market in India. Even EFC or Expenditure Finance Committee approved this new scheme on common market keeping in mind refund of Central GST proposal.
Pay GST by 20 August
You should also know some more things and it is that all companies pay GST. And last date for GST payment is August 20. But filing of refund claims must be only after August 20. In addition GST already replaced 17 Central as well as State taxes.
It also replaced 23 cesses. Thus there are a lot of changes post announcement of GST tax rates. In addition idea of GST invoice format and its rules will be added advantage. You can know more about it as it helps you in applying for refund under Central GST taxes.