The Central Board of Indirect Taxes & Customs (“CBIC”) vide its Circular No. 1068/1/2019-CX dated January 10, 2019 clarifies certain technical and operational issues to review the progress of implementation of Budgetary Support Scheme for eligible industrial units located in J&K, North-East and Hilly areas. Various technical and operational issues are forwarded by DIPP and other trade associations, the gist of the issues which are clarified by this circular are as here under:
- Eligibility of units which were under threshold exemption or manufacturing of exempted goods but are required to pay GST under GST regime.
- Where Procurement of inputs for supply as a part of Kit A cosmetics manufacturer has sought clarification as to whether its hair colour kit, would be considered as manufacture. While kit consist of colourant tube manufactured in their own factory at Baddi and other items manufactured by third parties situated in area based exempt locations and are procured to be part of the kit. This finished hair colour kit is cleared by their factory.
- Whether the entities having multiple operations in the state on account of there being single return for all the transactions.
- Time limit for disposal of the claims filed by the eligible units was discussed as at present no time limit is provided in the scheme itself.
The detailed clarification can be accessed at: http://www.cbic.gov.in/resources/htdocs-cbec/excise/cx-circulars/cx-circulars-2019/Circular1068-2019-CX.pdf;jsessionid=22354183EEE842BD612E7D90847F2C3A