<h1>GST Refund Exemption for North Eastern and Hilly States Extended Until March 2027; Reimbursement Mechanism in Place.</h1> The North Eastern and Hilly States are not exempt from tax refunds under the Goods and Services Tax (GST) until March 2027. The GST Council decided in 2016 that entities previously exempt from indirect taxes must pay under the GST regime. Any continuation of incentives by States or the Central Government will be managed through a reimbursement mechanism. From July 1, 2017, the Central Government introduced a scheme for budgetary support to eligible units, covering the Central Government's share of CGST/IGST paid after credit utilization. This was confirmed by the Minister of State for Finance in a Rajya Sabha response.