The contours of the budgetary support scheme which came in lieu of earlier excise duty exemption schemes for industrial units located in the Himalayan and north-eastern states are likely to be discussed in the upcoming 50th Goods and Services Tax (GST) Council meeting to be held on July 11, with a focus on the reimbursement mechanism by states for such units. In addition, the Council is also expected to discuss ministerial report on online gaming, outline the details for operationalising the appellate tribunal mechanism and clarify on the definition of multi-utility vehicles (MUVs), putting them at par with sports utility vehicles (SUVs) for similar tax treatment with compensation cess of 22 per cent, officials said.
Area-based exemptions for excise for eligible manufacturing units in the Himalayan and north-eastern regions were removed under the GST regime, which got rolled out from July 1, 2017. In the second GST Council meeting held in September 2016, it was discussed that all entities exempted from payment of indirect tax would pay tax in the GST regime and in case the state or central government decides to continue any existing exemption/incentive/deferral scheme, then it would be by way of a reimbursement mechanism through the budgetary route.
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