Business Today
Loading...

Uttarakhand HC issue notice to Centre on excise plea filed by Ashok Leyland

Uttarakhand High Court has asked the Centre to a file a counter affidavit and listed the matter for hearing in five weeks. According to lawyers, many such writs on the issue are pending before high courts of Uttarakhand and J&K

twitter-logoDipak Mondal | July 8, 2020 | Updated 13:45 IST
Uttarakhand HC issue notice to Centre on excise plea filed by Ashok Leyland

Uttarakhand High Court has issued notice to the Central government on a writ petition filed by Ashok Leyland challenging the reduction in benefits granted by the Central Government under the GST regime's Budgetary Support Scheme.

The manufacturer of commercial vehicles has challenged the scheme saying that as against 100% up front exemptions available earlier under the area-based exemptions in the Excise regime, benefits in the GST regime have reduced only 58% of the Central GST paid and 29% of the Integrated GST paid.

The Uttarakhand High Court has asked the Centre to a file a counter affidavit and listed the matter for hearing in five weeks. According to lawyers, many such writs on the issue are pending before high courts of Uttarakhand and J&K.

In the excise regime (Pre-GST regime), area-based exemptions were available to units located in specified under-developed areas like North East, Himachal Pradesh, Uttarakhand and J&K. After the implementation of GST, this scheme was replaced by Budgetary Support Scheme. The Budgetary Support Scheme is necessarily a cash refund scheme so that the credit chain is not broken. The scheme allows refunds of taxes paid in cash to the extent of 58% of the Central GST and 29% on interstate taxes. The logic behind a limited refund is the fact that taxes under GST are divided between the states and the Centre.

Also read: Coronavirus: Ashok Leyland seeks rebate in GST, road tax to revive CV industry

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close