9911796707
TMI BlogCertification of amounts eligible as Interest free Loan under the Karnataka Goods and Services Tax Act 2017 as incentives to the Industrial Units under Industrial PoliciesX X X X Extracts X X X X X X X X Extracts X X X X ..... ified goods and for specified periods; (b) Interest free loan to extent of specified percent of the assessed eligible Gross VAT/Net VAT for specified period and up to specified limit; (c) Reimbursement of specified percent of CST on interstate sales of the end products. 2. The Goods and Services Tax System has been implemented in the State of Karnataka with effect from July 01, 2017 along with all other State Govemments/UTs and Government of India. The Karnataka Value Added Tax Act 2003, Central Sales Tax Act 1956 and Karnataka Tax on Entry of Goods Act 1979 have been subsumed in the Karnataka Goods and Services Tax Act 2017. 3. The State Government had extended interest-free VAT loan for large and mega / ultra-mega/super-mega enterprises under Industrial Policy 2009-14, Industrial Policy 2014-2019, Aerospace Policy 2013-2023 and reimbursement of VAT to MSME & Category A,B,C enterprises under Agribusiness and Food Processing Policy, 2015. 4. All the industrial units that had been sanctioned interest-free loans for the eligibility period falling under the VAT regime, after the implementation of Goods and Services Tax (GST) from 01-07-2017 shall continue to get the loan to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... special incentives, which includes VAT loan and CST reimbursement to mega projects under Industrial Policy 2009-14 & Industrial Policy 2014-19. The VAT loan shall be replaced by loan on SGST component from 01/07/2017. For the remaining eligibility period, the CST reimbursement shall be only for the transaction upto 30/06/2017 and CST / IGST shall not be eligible for the transactions after 01/07/2017. Gross VAT shall be replaced by Gross SGST component where projects have been considered special package under Industrial Policy 2009-14 from 01.07.2017. IV. Agri-Business and Food Processing Policy 2015 VAT incentive GST Incentives Remarks MSME: 75% of net VAT reimbursement for a period of 5 years subject to maximum of 100% VFA. ABC Enterprises: 60%, 70%, 80% of net VAT reimbursement respectively for a period of 5 years subject to maximum of 100% VFA. MSME: 75% of net SGST reimbursement for a period of 5 years subject to maximum of 100% VFA. ABC Enterprises: 60%, 70%, 80% of net SGST reimbursement respectively for a period of 5 years subject to maximum of 100% VFA. Net VAT shall be replaced by Net SGST component in Agribusiness & Food Processing Policy 2015 from 01.07.2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplies between the company and its ancillary units or downstream units will be eligible for the SGST loan in the hands of one entity only. The same transaction shall not be considered for the SGST loan more than once in case both seller and purchaser having incentive packages. (d) Supplies of goods manufactured or produced by the industrial unit or processed after procurement from other units/ taxpayers will qualify for the eligible gross SGST. (e) The goods obtained from other units, including its own related units located in other Stales, and sold without processing in the industrial unit shall not qualify for eligible gross SGST; (f) The basic guiding principle will be that the goods should have been processed by the industrial unit and finally consumed in the State and only such turnovers would be reckoned to arrive at the eligible Gross SGST. 9. In addition to the above formulation for computation of the eligible gross SGST, the following additional or unit specific conditions may have been specified in the Government Order or the eligibility certificate- (a) Sales pertaining to specified but not all end products may qualify for eligible gross SGST; (b) For expan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f financial year. Such claim should be filed with the jurisdictional Local Goods and Services Tax Officer (LGSTO). The LGSTO shall verify the claim with reference to the documents produced in support of the claim and quantify the eligible amount. He shall submit a report to the jurisdictional DGSTO, who shall after satisfying himself the correctness of the quantification, submit a report to the Commissioner of Commercial Taxes in this behalf. (b) In case, the Unit is found to have availed incentive in excess of its eligibility, then the excess amount availed shall be reduced in the entitlements of the subsequent periods. (c) Along with the quarterly claims or annual claim for certification of the eligible incentive amounts, the industrial unit should provide declarations from each of its registered buyers within the State that they have not made any interstate supplies/exports/ of products purchased or products made from products purchased from the industrial unit from the industrial unit. In case the registered customer have done any interstate supply/export, the details should be obtained and submitted along with certification request by the industrial unit. (d) In case any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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