GST Exemption likely for cancer drug, Reimbursement of full Central GST for 11 Himalayan and North-Eastern states

The GST Council is likely to discuss a demand of industrial units located in 11 Himalayan and North-Eastern states for reimbursement of full Central GST and 50% of net Integrated GST (IGST) paid, sources said.

Exemption likely for cancer drug

• The GST Council is likely to exempt cancer medicine Dinutuximab imported by individuals from tax, decide on applicability of GST on food or beverages served in multiplexes and 22% cess on utility vehicles
• To check fake registration, the GST Council is likely to reduce the time period to 30 days, from 45 days currently, for submission of PAN-linked bank account details of the person seeking registration with tax authorities

Currently, the Centre reimburses 58% of net CGST and 29% net IGST under the Central Government scheme — ‘Scheme of budgetary support’ notified in October 2017

However, industrial units located in the Himalayan and North-Eastern states have been seeking implementation of a mechanism for reimbursement of balance 42% of the CGST and 21% of the IGST paid by them in cash along with appropriate interest.

States are, however, reluctant to reimburse their share of CGST and IGST collection they receive on account of tax devolution citing unsatisfactory revenue growth and implementation of similar schemes by the state to incentive industries 

In the pre-GST era of excise duty, industrial units in J&K, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura enjoyed a tax holiday