What is impact of Exempted unit in Uttaa Khand

[Asked by Guest]

Dear Sir,

We are a manufacturer situated in utarakahand presently we are in Exempted from Excise as well as CST & VAT so don't take Cenvat credit and also don't charge the Excise in Sales Invoice.

But in GST how we will do our transaction whether we will Illegible for present Exemption or we need o pat tax under GST Please provide your valuable reply.

Regards

Swapneswar

[KASTURI SETHI]

There was a news almost all the exemptions granted earlier are in tact in GST. Major impact is on small scale exemptions in Central Excise from ₹ 1.50 core to ₹ 20 lakhs. Basic framework of Central Excise and Service Tax same. Sections and Rules changed completely in both sectors.

[Ganeshan Kalyani]

Under GST it would be - pay the tax first and then claim refund. Exemption is not there under GST.

AI Summary

Exemption under GST may require paying tax first and seeking refund where prior excise or VAT reliefs change.
A Uttarakhand manufacturer asked whether pre GST exemptions from excise, CST and VAT and the absence of cenvat credit will persist under GST. Replies reported that many prior exemptions remain intact though thresholds and rules have changed, but practically some suppliers may need to pay tax under GST and subsequently claim refund, reflecting a procedural shift in exemption treatment.