Jammu & Kashmir Reimbursement of State Taxes’ scheme

In order to incentivize the newly established units and the units undergoing substantial expansion, J&K Government accorded sanction to the notification of the scheme namely the ‘Jammu and Kashmir Reimbursement of State Taxes for encouraging investments for industrial development’.

Here are things to know about Jammu & Kashmir Reimbursement of State Taxes’ scheme:

  1. The industrial unit shall exclusively be involved in the process of manufacturing activities.
  2. Scheme for providing reimbursement of State Taxes to the Industrial Units undergoing substantial expansion involving investment of Rs 50 crore or more, either on substantial expansion or new setup.
  3. The industrial unit shall make claim of only the cash paid in the shape of SGST after adjusting the input tax credit.
  4. The industrial unit shall be eligible for reimbursement of the tax on the supplies resulting due to substantial expansion only in case of units undergoing substantial expansion.
  5. The newly established industrial units shall be eligible for full reimbursement of the SGST paid in cash after adjusting input tax credit. The scheme shall be applicable only for intrastate supplies made by the industrial units.

    Read also: Jammu & Kashmir Startup Policy: 5 Things to know

  6. The scheme shall not be applicable to the industrial units mentioned in the negative list to the Government of India notification dated 1st January 2019, covering units manufacturing Tobacco, Pan Masala, Plastic Carry Bags, power generating units above 10 MW, coke, fly ash, Cement, Steel Rolling Mills, Gold and Gold Dore, goods produced by Petroleum or Gas refineries, industrial units not complying with environment standards or not having applicable environment clearance from the Competent Authority and low value addition activities like preservation during storage, cleaning, operations, packing, re-packing or re-labelling, sorting, alteration of retail sale price etc.
[With inputs from online reports]
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