Goods & Service Tax in India will result eradication of various exemptions .This is also clear from the statement of  Shri Najib Shah, chairman, Central Board of Excise and Customs (CBEC), who aired that

“Tax exemptions until now extended to industry for their expansion and diversification will have to go with GST legislation becoming a reality,”

Further , Ms Rashmi Verma Special Secretary (Revenue), has said that

“Government would drastically prune the list of exemptions currently being enjoyed by the industry as incentives for business expansion in hilly states and north-eastern part of India.”

“Reduction in exemptions would result in seamless flow of goods and services tax and substantially arrest its cascading effect.”

Going by their versions and given the fact that a uniform tax under GST can be possible only when uniform tax is levied on a product or service in each and every part of the country,  the following exemptions and incentives will finish with the onset of GST ;

  1. area based exemptions 
  2. industry based exemptions 
  3. incentives to industries
  4. general exemptions etc .

However, it appears that the exemptions to supplies to ICB, UN and export incentives will continue .

Though, no time frame was indicated by them as to when GST will roll out finally . However, a reasonable time period will be around August to September 2016 only when such things can  become a reality,since winter session is about to finish with GST bill passing a distant dream away .

It is worthwhile to mention that  basic draft of GST bill is available in  public domain. Whereas, final draft of GST is about to be released in coming days .

( Anand Mishra, Founder Advocate , AMLEGALS – The author is a leading advocate. He has published various research papers on GST . He handles cases in Tribunals  & High Courts of India. He can be contacted on .For more, please refer )

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Qualification: LL.B / Advocate
Location: AHMEDABAD, Gujarat, IN
Member Since: 14 Apr 2018 | Total Posts: 152
I am a litigation & arbitration advocate. I am founder of a leading full service law firm AMLEGALS. I handle litigation in indirect taxes, Insolvency & Bankruptcy Code, IPR, Arbitration, Contracts etc in High Courts, Tribunals-NCLT,CESTAT,NCLAT etc, Arbitral Tribunals and various Court of View Full Profile

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  1. R.Chandrakandan says:

    Will there be ombudsman under GST regime as in Income Tax and Service Tax for redressal of genuine grievances,not cared by the CGST and SGST officers?

  2. Davinder Singh Bharaj says:

    Presented in a very specific and precise manner. Clearly understandable.Consistent disruption in winter session is the major reason of no passing of GST Bill and subsequently implementation of GST with effect from 1st April’16.

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October 2020