TaxTMI 
TaxTMI 
Certification of amounts eligible as Interest free Loan under the Karnataka Goods and Services Tax Act 2017 as incentives to the Industrial Units under Industrial Policies
X X X X Extracts X X X X
X X X X Extracts X X X X
....taken expansion or diversification. (a) Entry tax exemption on specified goods and for specified periods; (b) Interest free loan to extent of specified percent of the assessed eligible Gross VAT/Net VAT for specified period and up to specified limit; (c) Reimbursement of specified percent of CST on interstate sales of the end products. 2. The Goods and Services Tax System has been implemented in the State of Karnataka with effect from July 01, 2017 along with all other State Govemments/UTs and Government of India. The Karnataka Value Added Tax Act 2003, Central Sales Tax Act 1956 and Karnataka Tax on Entry of Goods Act 1979 have been subsumed in the Karnataka Goods and Services Tax Act 2017. 3. The State Government had extended interest-free VAT loan for large and mega / ultra-mega/super-mega enterprises under Industrial Policy 2009-14, Industrial Policy 2014-2019, Aerospace Policy 2013-2023 and reimbursement of VAT to MSME & Category A,B,C enterprises under Agribusiness and Food Processing Policy, 2015. 4. All the industrial units that had been sanctioned interest-free loans for the eligibility period falling under the VAT regime, after the impl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ement GST Incentives Remarks The Empowered Cabinet Sub-committee under the Chairmanship of Hon'ble Chief Minister has sanctioned special incentives, which includes VAT loan and CST reimbursement to mega projects under Industrial Policy 2009-14 & Industrial Policy 2014-19. The VAT loan shall be replaced by loan on SGST component from 01/07/2017. For the remaining eligibility period, the CST reimbursement shall be only for the transaction upto 30/06/2017 and CST / IGST shall not be eligible for the transactions after 01/07/2017. Gross VAT shall be replaced by Gross SGST component where projects have been considered special package under Industrial Policy 2009-14 from 01.07.2017. IV. Agri-Business and Food Processing Policy 2015 VAT incentive GST Incentives Remarks MSME: 75% of net VAT reimbursement for a period of 5 years subject to maximum of 100% VFA. ABC Enterprises: 60%, 70%, 80% of net VAT reimbursement respectively for a period of 5 years subject to maximum of 100% VFA. MSME: 75% of net SGST reimbursement for a period of 5 years subject to maximum of 100% VFA. ABC Enterprises: 60%, 70%, 80% of net SGST reimbursement res....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rial unit meant for final consumer within the State, the Gross SGST on such transactions will be eligible for incentive of Gross SGST. (b) For supplies made by the Industrial unit to other taxpayers within the State who in turn make inter-state supplies or export sales, the buying taxpayer(s) would be eligible to claim ITC equivalent to the Gross SGST on this turnover. The SGST on such turnover shall not be eligible for the loan incentive by the beneficiary industrial unit. (c) Any outward supplies or inward supplies between the company and its ancillary units or downstream units will be eligible for the SGST loan in the hands of one entity only. The same transaction shall not be considered for the SGST loan more than once in case both seller and purchaser having incentive packages. (d) Supplies of goods manufactured or produced by the industrial unit or processed after procurement from other units/ taxpayers will qualify for the eligible gross SGST. (e) The goods obtained from other units, including its own related units located in other Stales, and sold without processing in the industrial unit shall not qualify for eligible gross SGST; ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bsp; c State/ UT Tax B A d Cess 12. The CST reimbursement provided by Commerce and Industries Department is to be limited up to 30.06.2017 i.e., date prior to implementation of Goods and Services Tax as the Central Sales Tax has been subsumed under GST. [only petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption are liable to CST.] 13. Returns, documents and other information to be submitted by the industrial unit: (a) The industrial unit should file tax return in Form GSTR 3B and GSTR 1 every month as required under Karnataka Goods and Services Tax Act. The unit may claim certification of the eligible incentive amounts once in every quarter. An existing unit which has undertaken expansion, diversification or modification should however claim certification only after the end of financial year. Such claim should be filed with the jurisdictional Local Goods and Services Tax Officer (LGSTO). The ....