TaxTMI 
TaxTMI 
Jammu and Kashmir Reimbursement of State Taxes for encouraging large investments for industrial development in the State of Jammu and Kashmir.
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....itle and commencement.-The scheme shall be called as Jammu and Kashmir Reimbursement of State Taxes for encouraging large investments for industrial development in the State of Jammu and Kashmir. Objective.-The State Government in order to encourage large investments as per policy targets set under Industrial Policy, 2016 has decided that it would provide budgetary support to the eligible units by way of part reimbursement of the State Goods and Services Tax, paid by the Industrial unit after adjustment of Input Tax Credit on supply of finished goods manufactured by it. The scheme shall be applicable to only such existing units undergoing substantial expansion or to such new units being set up on or after 01-02-2019. 2. Definitions. 2.1 'Eligible unit' means- (a) a unit having GST registration for the premises as a place of business, where manufacturing activity is already being carried out by the Industrial Unit and the same is undergoing substantial expansion involving additional investment of rupees fifty crores or above in plant and machinery certified by Industries and Commerce Department. Or (b) a newly established industrial unit which has made an investment of rupees ....
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.... established unit [as per para 2.1 (b)] in terms of sub-section (l) of section 49, the Jammu and Kashmir Goods and Services Tax Act, 2017 after utilization of the Input Tax Credit of the State Tax and Integrated Tax. 3.2 Where inputs are procured exclusively from a registered person operating under the Composition Scheme under section 10 of the Jammu and Kashmir Goods and Services Tax Act, 2017 or from any unregistered persons, the benefit of the reimbursement will not be extended to the industrial units. However, if the purchases are made partly from registered, unregistered or composition dealers the benefit will be as per para 3.10 : Provided further that the Industrial Units shall not be eligible for the scheme if it is making supply of services or supply of interstate supplies of finished goods either directly or through intermediaries or through proxies. Explanation :-To avail benefit of this scheme, eligible unit shall first utilize Input Tax Credit of Integrated Tax and State Tax and balance of liability, if any, shall be paid in cash. Where this condition is not fulfilled, the reimbursement sanctioning officer shall reduce the amount of reimbursement payable to the exte....
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....pted with the approval of the Jurisdictional Additional Commissioner (Administration and Enforcement). A new industrial unit investing fifty crores or more in plant and machinery shall be required to fulfil the following conditions :- (i) It shall not be formed/established by splitting up, or reconstruction of a business already in existence. (ii) It shall not be formed/established by transfer to the new unit of plant or machinery previously used for any other purpose. (iii) It shall not be relocated from elsewhere and/or is not an existing unit reopened under a new name and style. 3.5 For the purpose of this Scheme, "manufacture" means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly. Where the State Tax paid on value addition is higher than the State Tax worked out on the value addition shown in column (4) of the Table below, the unit may be taken up for verification of the value addition : Serial No. Chapter Description of goods Rate (%) Description of inputs for manufacture of goods in column (3) (1) (2) (3) (4) (5....
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....have to stamp the supply invoices conspicuously with the words, "FOR SUPPLY/CONSUMPTION IN THE STATE OF JAMMU AND KASHMIR ONLY". 3.9 The Scheme shall be available to only those Industrial Units who provide employment to permanent residents of the State of Jammu and Kashmir as per guidelines of Industrial Policy, 2016. 3.10 The Industrial Units making purchases partly from the persons operating under Composition Scheme under section 10 of the Jammu and Kashmir Goods and Services Tax Act, 2017 and/or from unregistered persons shall submit the details of the such inputs on prescribed format detailed as Annexure "C" or any other format as may be notified by Commissioner. The reimbursement to such industrial units will be in proportion to the inputs purchased from the registered dealers after adjustment of the input tax credit. 4. Inspection of the eligible unit. 4.1 The reimbursement under the Scheme shall be allowed to an eligible unit subject to an inspection by a team constituted by Commissioner State Taxes. The inspection report shall be made available to the jurisdictional Assistant Commissioner/State Tax Officer before sanction of the reimbursement. Reimbursement amount will ....
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....o have never been allowed and any inadmissible reimbursement including the budgetary support paid for the past period under this scheme shall be recovered along with an interest @16% per annum thereon. In case of recovery or voluntary adjustment of excess payment, repayment, recovery or return, interest shall also be paid by unit at the rate of fifteen per cent per annum calculated from the date of payment of refund till the date of repayment, recovery or return. 6.2 When any amount under the scheme is availed by wrong declaration of particulars regarding meeting the eligibility conditions in this scheme necessary action would be initiated and concluded in the individual case by the Office of concerned Assistant Commissioner or State Tax Officer of State Taxes, as the case may be. 6.3. That the Industrial Unit failing to intimate the Department any change in its constitution, bank account, line of activity, and title of the firm within the time allowed shall not be eligible for reimbursement of taxes for the period in which he fails to intimate the Department. 6.4 The procedure for recovery.-Where any amount is recoverable from a unit, the Assistant Commissioner or State Tax Off....