GOVERNMENT OF RAJASTHAN
FINANCE DEPARTMENT
(TAX DIVISION)

Dated 24-02-2020

The Government issued the Rajasthan Investment Promotion Scheme, 2010 (hereinafter referred to as the Scheme), vide this Department’s order No.F.12(28)FD/Tax/2010-63,  dated 25.08.2010 (as amended from time to time). The Investment and Employment Generation Subsidy under the Scheme was linked on the basis of VAT and CST due and deposited, as the revenue was accrued to the State Government. After introduction of the GST, the scheme was reviewed and it was decided to link the benefits of Investment Subsidy and Employment Generation Subsidy with the SGST due and deposited, since under the GST regime the SGST is accrued to the State revenue and the provisions were amended accordingly.

Upon a query made by the Commercial Taxes Department regarding the Scope of Clause 2 (YA) of the scheme and after detailed examination of the issue, the State government in exercise of the powers conferred to it under clause 10 of the Scheme, hereby clarifies as under.-

CLARIFICATION

The term “State tax due and deposited” by an enterprise does not include the amount of State tax due and deposited against the supplies made by it to its extended arms (subsidiaries and/or marketing wings and/or dealers and/or distributors or any other middle man, either directly or indirectly controlled by it), where such extended arms are subsequently making inter-state supplies of goods so received and utilizing the credit of State Tax suffered on such goods for making payment towards the output tax under the Integrated Goods and Services Tax Act, 2017 in terms of sub-section (4) of Section 49 of the Rajasthan Goods and Services Tax Act, 2017.

[No.F.12(19) FD/Tax/2018/136]