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TMI BlogProcedure for manual disbursal of budgetary support under Goods and Service Tax Regime to the units located in States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... otifications. While ab-initio exemption was available to the units located in the States of Uttarakhand and Himachal Pradesh, the units located in other aforesaid areas were required to pay Central Excise duty and avail exemption by way of refund of cash component of such duty paid. 2. Under GST regime there is no such exemption and the existing units which were availing exemption from payment of Central Excise duty prior to 01.07.2017 are required to pay CGST SGST/IGST like a normal unit. Thus, presently no exemption is available to these units by way of either ab-initio exemption or by way of refund. 3. In order to obviate the hardships faced by such units, Central Government has decided to provide budgetary support to the eligible units which were operating under erstwhile Area Based Exemption Schemes, for the residual period for which the units would have operated under the schemes, by way of refund of the Goods and Services tax, limited to its share of CGST and/or IGST retained after devolution of taxes to the states. In this regard Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce Industry which is the administrative department for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application for payment of budgetary support. The application shall be processed by the Deputy/Assistant Commissioner of the Central Taxes for sanction of the admissible amount. The sanctioned amount shall be credited into bank accounts of the beneficiaries through PFMS platform of the Central Government. 6. The claim for the quarter ending September, 2017 has already become due. In order to mitigate the difficulties of the eligible units, it has been decided that units would be registered on the basis of application filed by them manually and application for claim of budgetary support for the said quarter would also be filed and processed manually. The approval of the registration for the scheme and processing of the application for budgetary support for the quarter shall also be undertaken manually by the jurisdictional Deputy Commissioner/Assistant Commissioner of the Central Tax. The sanctioned amount shall be credited into the bank accounts of the beneficiaries through the PFMS platform in a manner fully compliant with the direct transfer of the benefit to the account of the assessee. 7. The standard operating procedure for the claims relating to the first quarter en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner having jurisdiction over the eligible unit. 9. Submission of application for budgetary support by the eligible unit for quarter ending September, 2017 and its sanction (i) An eligible unit after allotment of the Unique ID may file an application for claiming budgetary support under the provisions of para 5.7 of the scheme in the format attached to this circular. The application shall be filed by the eligible unit only after return for the quarter has been filed and tax as per return is paid. (ii) Once application is filed, duly supported by the prescribed document, the same shall be processed for sanction. The claim shall be sanctioned after verification of the tax paid by the eligible unit. The details relating to tax payment in cash and input tax credit availed, utilized including purchases made from a composition dealer during the quarter shall be available in the GST returns of the taxpayer, which are available on the CBEC GST Application for verification of the application for the budgetary support filed by the unit. The closing balance of the credit after end of the quarter shall also be provided for verification by the Assistant/Deputy Commissioner. (iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stant Commissioner before sanction of the claim of budgetary support. However, in cases where inspection cannot be conducted the budgetary support amount may be sanctioned provisionally for a period of six months. 10. A separate circular on the manner of allocation of the budget by DIPP and direct transfer of the sanctioned amount into bank accounts of the beneficiaries through PFMS would be issued shortly. In the interim, trade facility may be issued to initiate the process of registration and receipt of application for payment of budgetary support for the quarter July, 2017 to September, 2017. 11. Difficulty faced, if any, in the implementation of the Circular should be brought to the notice of the Board. Hindi version will follow. Yours faithfully, (Rohan) Under Secretary CX3 Encl.: As above. Form for Registration of eligible units for budgetary support 1. GSTIN No. 2. Legal Name 3. Trade Name, if an 4. Central Excise Registration No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ESIC no. of the eligible unit/establishment of which the eligible unit is part of 21. Consumption of electricity in units (kwh) during financial year 2016-17 and 2017-18 (up to 30 th June 2017) . Signature (Proprietor/MD/Partner/ Authorised Director/Authorised Signatory) Seal of the registered entity under GST Application for Budgetary Support 1. Unique ID No. 2. Legal Name 3. Trade Name, if an 4. Address of the eligible unit 5. Tax Period From (DD/MM/YY) To (DD/MM/YY) 6. Amount of Total Tax Paid during the quarter in respect of GSTIN as per the return Name of the Tax Tax Cash Credit Balance of Credit, any Total value of Taxable inputs received Total receipts from compositio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of all the Specified Goods manufactured in the premises of eligible unit; (ii) The information under this column should be duly verified by the Chartered Accountant in terms of Para 5.9.1 and 5.9.2 of the scheme of budgetary support notified vide notification dated 05.10.2017 issued by Department of Industrial Policy and Promotion. (iii) However, in case information under column 6 and 7 above is identical and relates only to the specified goods manufactured by the eligible unit, there is no need for submission of Chartered Accountants certificate. 8. Claim of Budgetary Support based on S. No. 7 above to be calculated in following order (a) Budgetary support in respect of intra-state supplies = {(CGST in cash- Balance of (ITC of CGST+ITC of1GST)) * 58%) * (1- Value under(G)} / Value under (F) (b)Budgetary support in respect of inter-state supplies {(IGST in cash- Balance# of (ITC of IGST+ ITC of CGST)) * 29%) * (1- Value under(G)} / Value under (F) # Balance to be taken under (b) after excluding amount considered under (a) above (c) Total Budgetary Support (a) + (b):- 9. Value addition achieved: (refer para 5.8 of notification date ..... X X X X Extracts X X X X X X X X Extracts X X X X
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