Bhopal: The implementation of the GST has come as a shocker for the industrialists who have already put up their units in the state or are planning to do so. The state government has withdrawn all concessions in VAT and Central Sales Tax given to the industries under its industrial promotion policy. Under the policy, the taxes deposited by these industries were reimbursed to them. From July 1, they would deposit GST instead and would not be eligible for its reimbursement.
These units were also given concessions in entry tax. Those too stand withdrawn. The concessions in luxury tax given to the hotels and in entertainment tax to cinema houses have also ended. The commercial tax department has issued notification to this effect.
Till the industries department frames a new policy vis-à-vis GST, the concessions would not be available. It would not be easy for the government to make provision for reimbursement of GST.
The industrialists who had obtained major concessions from the state government will now have to deposit huge amounts as tax. This may also adversely impact the industralisation of the state as the industrial groups, which intended to take advantage of the tax concessions, may defer their plans for establishing units here.
