Gandhinagar, October 5, 2017
The Gujarat government on Tuesday issued a notification announcing that VAT incentives and concessions previously available under the state's industrial policies will now be available under State Goods and Services Tax (SGST). This will apply to all the policies prior to July 1 under which financial incentives were given.
Though the state government has now officially accepted the demand of industries to give VAT-like SGST benefits, it is yet to announce the most critical decision — about the volume of SGST benefits. A new GR (government resolution) says that 'modalities' will be decided later.
Manoj Das,in-charge principal secretary, industry & mines said, "The state government has decided to give SGST benefits in lieu of VAT benefits as given in state's industrial and other policies. It's been accepted in principle. A committee has been formed to decide modalities."
Das added, "SGST benefits will be given on the goods or services sold in Gujarat only. It will not be given on interstate sales. Detailed estimates will be prepared once we received SGST share from the Government of India.''
The industries and mines department's GR with respect to VAT-SGST, reads, "The state government reviewed the impact of the changed (tax) structure and decided to continue the support to the investment and decided to amend the provision of VAT concession and allow the SGST concessions." It adds further, "VAT incentives will be replaced by SGST incentives. All other terms and conditions have been kept same.''
Industry players have supported the step taken by the state government. "The move will certainly benefit the industry. VAT incentives were available for importing textile machinery which were gone after GST implementation. This will help textile industry players settle their businesses in the new tax structure," said Shailesh Patwari, president, Gujarat Chamber of Commerce and Industries.
[The Times of India]