Procedure 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.
1060/9/2017 Dated:- 27-11-2017 Circular
Central Excise
Circular No.1060/9/2017-CX
F. No: 116/15/2017-CX-3
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
New Delhi, dated 27th November, 2017
To
The Principal Chief Commissioner/ Chief Commissioner of GST & Central Excise
(Chandigarh, Meerut, Kolkata and Shillong zone)
DG, GSTI, New Delhi
Subject: Procedure 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.
Madam/Sir,
As you are aware, under the Central Excise regime as its existed prior to 01.07.2017, the units located in the states of Jammu & Kashmir, Uttarakhand, Hima
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ch 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 scheme, has issued a notification dated 05.10.2017 regarding "Scheme of budgetary support under Goods and Service Tax Regime to the units located in States of Jammu & Kashmir, Uttrakhand, Himachal Pradesh and North East including Sikkim." The gazette copy of the scheme, issued on 11.10.2017, can be accessed from website www.e-gazette.nic.in under Ministry of Commerce and Industry. The new scheme is introduced as a measure of goodwill, only to the units which were eligible for availing benefits under the earlier excise duty exemption/refund schemes but has otherwise no relation to the erstwhile schemes. The scheme of budgetary support has come
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of the integrated tax paid through debit in the cash ledger account maintained by the units in terms of section 20 of the Integrated Goods and Services Act, 2017. However, where inputs are procured from a registered person operating under Composition Scheme under Section 10 of the Central Goods and Services Act, 2017 the amount i.e. sum total of (i) & (ii) above shall be reduced by the same percentage as is the percentage value of inputs procured under Composition scheme out of the total value of inputs.
5. The budgetary support shall be disbursed from the budgetary allocation of DIPP, which shall further allocate to PAO, CBEC for its disposal. The eligible unit is required to obtain one time registration and file an 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
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f the eligible units under the scheme
(i) The application for registration under the scheme by the eligible units shall be submitted in triplicate in the format attached to this circular. The application shall be signed by the proprietor/partner/managing director of the eligible unit or by the person authorized by him in this behalf and supported by the self-authenticated copies of the documents in support of information as per the application. The registration under GST is a necessary pre-requisite for the scheme.
(ii) In case more than one eligible unit is operating under the same GSTIN separate registration is required to be obtained for each of the eligible units.
(iii) The jurisdictional Deputy Commissioner/Assistant Commissioner of the Central Taxes would examine the application in terms of the scheme as notified on the basis of documents submitted along with the application for registration.
(iv) A unique ID for each of the eligible units shall be allotted after registration
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spection of the eligible unit by a team constituted by them. Jurisdictional Commissionerate of CGST shall provide necessary assistance in carrying out the inspection. Immediately after completion of inspection a copy of Inspection report would be forwarded to the Assistant/Deputy Commissioner 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. Th
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it and the quantity of specified goods manufactured by the eligible unit vis-a-vis the inputs, input tax credit availed and specified goods supplied by the registrant under the given GSTIN.
In such case, on the basis of additional information and the refund application the jurisdictional Deputy Commissioner/Assistant Commissioner shall ensure that budgetary support is limited to the tax paid in cash after utilization of the input tax credit on the specified goods manufactured by the eligible unit. The return filed by the unit may be covering the entire transactions taking place outside the eligible unit in the same GSTIN.
(iv) Further, in cases where the other unit operating under same GSTIN, is supplying the inputs to the eligible unit as such or after manufacture , the credit availed by supplying unit on the inputs would have to be factored for determining the input tax credit of the eligible unit. The information in terms of para 5.9.2 of the scheme is required to be submitted by
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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.
5.
Name of the unit
6.
Address of the unit
7.
State where the unit is located
8.
Date of commencement of commercial production specified goods-wise
1.
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me GSTIN
18.
No of persons employed in the manufacturing unit
19.
EPF no. of the eligible unit/establishment of which the eligible unit is part of
20.
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 30th 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 composition dealers
(A)
(B)
(C)
(D)
(E)
(F)
(G)
Central Tax
State/ UT Tax
Integrated Tax
Cess
Total
Information under this
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ustrial 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 dated 05.10.2017)
10. Details of Bank Account (As indicated in Registration form by the eligible unit)
i.
Account Number
ii.
Name of the Bank
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