CBEC has issued procedure for manual disbursal of budgetary support for units located in Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim

Central Board of Excise & Customs(CBEC) has issued Circular No. 1060/9/2017-CX dated 27/11/2017 prescribing procedure for manual filing and processing of budgetary support claims relating to first quarter ending September,2017, by units which were earlier availing area based exemption under Central Excise Act.

Key points of the Circular are:

  1. Under the Central Excise Act the units located in Jammu & Kashmir, Himachal Pradesh, Uttarakhand and North East including Sikkim were eligible to avail exemptions from payment of Central Excise in terms of area based exemption notifications. However, in the 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 and SGST/IGST
  2. In order to reduce 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 scheme.
  3. The aforesaid scheme shall come into force from 01.07.2017 and shall remain valid till 30.06.2027.
  4. The amount of budgetary support shall be the total of 58% of Central GST and 29% of Integrated GST paid through the cash ledger.
  5. The claim for the Budgetary support under the said scheme shall be filed on a quarterly basis namely for January to March, April to June, July to September & October to December.
  6. The Government has laid down the manual procedure for registration and application of budgetary support for the Quarter ending July to September,2017.

  • Procedure for Registration under the said scheme:

i)The application for registration under the said scheme by the eligible units shall be submitted in triplicate in the format attached to the circular.

ii)The application shall be signed and supported by the self-authenticated copies of the documents in support of information as per the application.

iii)           The registration under GST is a necessary pre-requisite for the scheme.

iv)The application shall be duly verified by the jurisdictional Deputy Commissioner/Assistant Commissioner of the Central Taxes.

v)A unique ID shall be allotted to each of the eligible units after registration.

  • Procedure for Submission of application for budgetary support under the said scheme:

i)An eligible unit after allotment of the Unique ID may file an application for claiming budgetary support under the said scheme in the format attached to the circular.

ii)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.

iii)           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.

iv)In cases where an entity is carrying out its operations in a State from multiple business premises or where the other unit operating under same GSTIN, is supplying the inputs to the eligible unit as such or after manufacture the application for budgetary support shall be supported by additional information duly certified by a Chartered Accountant.

v)The scheme also provides for inspection of the eligible unit by a team constituted by Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry and the findings of the team shall be provided to the Deputy/Assistant 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.

Source :Central Board of Excise & Customs


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