SGST to be reimbursed to agencies constructing 3014 MW HEPs
*No benefit in case of undisclosed change in project conditions
Mohinder Verma
JAMMU, Aug 18: In order to encourage investment in the power projects in the Union Territory of Jammu and Kashmir, the Government has announced scheme for reimbursement of State Goods and Services Tax (SGST) and the same will come into operation with effect from the date of commencement of construction of projects and remain in force till their completion.
At the initial stage, the benefit of the scheme will be applicable in respect of four major power projects coming up in Jammu region—Kwar, Pakal Dul, Kiru and Ratle, which will generate a total of 3015 Mega Watts of electricity and go a long way in making J&K Union Territory self-sufficient in power sector.
“In order to encourage investment in power projects in the UT of J&K, Government hereby notifies the scheme for reimbursement of State Goods and Services Tax (SGST) to executing agency for development and construction of power projects—540 MW Kwar, 1000 MW Pakal Dul, 624 MW Kiru and 850 MW Ratle”, read a notification issued by the Finance Department.
The scheme titled “Reimbursement of State Goods and Services Tax on utilization of goods and services in the power projects in the UT of J&K” will deem to have come into operation with effect from the date of commencement of construction of the projects and will remain in force till the completion of the projects.
Under the scheme, the Government will reimburse to executing agency the State Goods and Services Tax paid against the bills raised by the supplier of goods and services in relation to the development and construction of power projects namely Kwar, Pakal Dul, Kiru and Ratle. The claim of the reimbursement will be restricted to SGST paid as per the invoices uploaded by the supplier of goods and services in its GSTR-1 and accordingly reflected in GSTR-2A of the executing agency including cash paid by it on reverse charge mechanism basis.
The reimbursement under the scheme will be worked out on quarterly basis for which claims will be filed on a quarterly basis-January to March, April to June, July to September and October to December. “Any supply invoice which is found on investigation to be false and fabricated will lead to the rejection of the claim for the whole quarter and the proceedings will be initiated for recovery of the reimbursement paid to the executing agency for the same period”, the notification said.
Stating that there will be no reimbursement of the SGST in case of supplies received from unregistered persons and the suppliers who have opted for the composition scheme under GST, the Government said that the executing agency will have to make declarations while claiming the scheme benefit, adding “if reimbursement is not specifically claimed in the declaration, no refund would accrue to the executing agency for such bills not mentioned in the declaration”.
About repayment by claimant and recovery/dispute resolution, the scheme said that reimbursement allowed will be subject to the conditions and in case of contravention of any provision of the scheme, the reimbursement will be deemed to have never been allowed and any inadmissible refund under the scheme will be recovered along with interest at the rate of 18% per annum.
Similarly, in case of recovery or voluntary adjustment of excess payment, repayment recovery or return, interest will also be paid by unit at the rate of 18% per annum calculated from the date of payment of refund till the date of repayment, recovery or return.
“When any amount under the scheme is availed by wrong declaration of particulars regarding meeting the eligibility conditions, necessary action would be initiated and concluded by the Nodal Officer”, the Government said, adding “the executing agency failing to intimate the department any change in the project conditions will not be eligible for the reimbursement for the period in which the conditions are changed”.
Upon the cessation of the scheme, the unpaid claims will be settled in accordance with the provisions of the scheme while the recovery and dispute resolution mechanism will continue to be in force, the Government further said, adding “the scheme will go a long way in encouraging investment in the power projects and help in attaining self-sufficiency status by the J&K UT”.
Follow our WhatsApp channel
