Area Based Exemption

[CA AJAY KUMAR AGRAWAL]

Dear all, By the time learned members must have an idea of shape of GST in area based exemption states like HP & UK. Please share your valuable views or share link of relevant articles.

[DR.MARIAPPAN GOVINDARAJAN]

It is learnt that the same may likely to be continued in GST regime.

[CA AJAY KUMAR AGRAWAL]

Thank you sir very much. My query was specifically regarding whether they have to avail ITC on the transition date & then pay GST or whether they will be eligible to avail ITC after completion of Exemption period & have to pay GST now without availing ITC.

[DR.MARIAPPAN GOVINDARAJAN]

I will study and revert.

[Ganeshan Kalyani]

In my view if exemption is going to continue under GST by way of refund, then they should allow to avail itc and difference would be refunded. Or they may allow to pay full tax and claim refund of untilized input tax credit.

The transition provision is still to clear.

[Govind Gupta]

http://www.fforce.in/will-future-area-based-tax-exceptions-gst/

[Ganeshan Kalyani]

Area-based tax exemptions will undergo a key change in the proposed goods and services tax (GST) regime-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.

[Nilesh Kothari]

Does the GST act has any such provision or did the government come out with a notification to provide for the same?

[DR.MARIAPPAN GOVINDARAJAN]

As per the present status area based exemption may not be available in GST regime.

[Kailash Singhal]

dear sir

as per sec 8 of gst benefits can be given by gst council now it is rumor that benefits to be extended by administration of ut regards

kc singhal

AI Summary

Area-based tax exemptions under GST: whether to avail input tax credit at transition or pay now and claim refund remains unclear. Area-based exemptions under GST are unresolved; the key operative issue is whether affected units must avail Input Tax Credit on the transition date and pay GST now, or whether ITC will be available only after the exemption period, requiring payment without transitional credit. Commentators propose either a pay-now-and-claim-refund mechanism to protect the credit chain or a route to avail and later refund ITC, but transition provisions and administrative authority to grant benefits remain unclear.