A northeastern business chamber on Friday urged the Central government to frame a focused and favourable industrial policy for the region and sought greater clarity on how the central excise duty refund, currently eligible for industries set up under a regional policy, would continue under the GST regime.
The Federation of Industry and Commerce of North Eastern Region (FINER) President Pabitra Buragohain met Union Minister of State for Home Kiren Rijiju in New Delhi and submitted a representation seeking his intervention in finalising the industrial policy, keeping in view the various representations that have been submitted to highlight specific needs of the northeast.
"Priority should be given to the formulation of the North East Industrial and Investment Promotion Policy (NEIIPP) that favours the region and contributes to economic development," he said.
While the Goods and Service Tax (GST) is slated for a July 1 roll-out, some crucial issues regarding industries besides special reference to Assam and northeast are still unclear, said Buragohain.
"The issue of how the central excise duty refund currently eligible for industries set up pursuant to the NEIPP policy would continue under the GST regime is still not clear as there was no mechanism for it," he said.
On the issue of continuation of tax exemptions given to industries in the northeast and some other states, the Central government had said that it would refund only 58 per cent of the Central Goods and Service Tax (CGST) to be paid by the companies while the states would need to decide on their stance, since under the GST, 42 per cent of the tax would devolve on them.
The FINER President also sought 100 per cent excise duty refund under the GST and urged Rijiju to take up the matter with the central leadership.
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