Clarification On GST

[Asked by Guest]

My Query is that

Many of the manufacturing unit get exemption by State Govt. of VAT And CST under industrial Promotion Policy 2014 in Madhya Pradesh for Five from the date of Commencement of production of New units

So my query is that whether the same exemption is also available for the aforsaid entity or not

Please clarify.. As soon as possible

[Rajagopalan Ranganathan]

Sir,

It all depends on the provision of GST law to be enacted, rules to be framed under the law and Notifications to be issued under the law and the rules. Therefore it is too early to advise that the exemptions granted under exisisting law will continue under the GST Regime. We have to wait and see.

[KASTURI SETHI]

We shall be groping in darkness until or unless GST Bill is enacted.

[Ganeshan Kalyani]

Sir, in addition to the views of the experts, I would like to share that there is much talk going amongst assessees and law maker on whether to continue the exemption or not. The law is just a draft. It has been passed by both the house and now it is in the process of ratification by respective States. Once this is done we may have some vision in respect of the provisions under GST. Thanks.

[Ganeshan Kalyani]

Sir, in my personal view, the benefit would continue to get to the assessee upto the period the exemption is given under VAT regime. Even earlier when Sales tax was changed to VAT the exemption made available were continued upto the period of eligibility. Thanks.

[YAGAY and SUN]

Such State specific industrial promotion scheme shall be ended and refund mechanism after payment of GST will come into picture.

[Ganeshan Kalyani]

Sir, agreed but those companies which have already invested huge capital and the Govt. Has already given them exemption for a particular period. I guess these exemption shall continue until such period. However I agree that those are planning to invest in GST regime the exemption shall not be given. Thanks.

[KRT MOTORS]

as an end user and the valid gst tax payer, how can i confirm my supplier/service provider remitted cgst/sgst against the bill issued in my favour. how long it will take to confirm my transaction benefited the govt. pls.clarify

AI Summary

Continuity of tax exemptions: whether State industrial VAT/CST incentives survive transition to GST depends on transitional rules and notifications.
Continuity of State-granted VAT/CST exemptions for industrial promotion upon introduction of GST is contingent on the enacted GST statute, rules, and notifications; existing beneficiaries may either retain exemption coverage for their original eligibility period if transitional provisions preserve such benefits, or State-specific concessions may be ended and replaced by a refund mechanism, and purchasers have raised the need for means to verify supplier remittance of central and State GST components.