Bhubaneswar: The Odisha Cabinet today approved the amendment in the Industrial Policy Resolution (IPR) to enable VAT reimbursement (fiscal incentives) which would help around 300 industries.
The Industrial Policy Resolution (IPR) 2007 and 2015 were promulgated w.e-f. 02.03.2007 and 24.08.2015 respectively. The implementation of various fiscal and non-fiscal incentives as per the provisions of IPR -2007 and IPR -2015 are being administered upon issue of respective Operational Guidelines /Notifications by the Industries /Finance Department.
Consequent upon introduction of Goods and Services Tax (GST) w.e-.f. 01.07.2017, the existing provisions of IPR -2007 and IPR -2015 require amendment to suitably replace VAT, Entry Tax and Entertainment Tax so as to facilitate extension of modified fiscal benefits Under new regime of Goods and Services Tax (GST). Accordingly, amendments have been made to the relevant portion of the IPR -2007 and IPR -2015. VAT, Entry Tax and Entertainment Tax related incentives are substituted by net SGST incentive. The fiscal benefits shall be made available for all eligible units as per the amended provisions of the IPRs w.e.f. 01.07.2017 i.e. the date of introduction of GST.
Apart from this, the priority list, Negative list and Definition of Downstream industries Under IPR -2015 have also been amended suitably so as to remove ambiguity in determining eligibility of various incentives Under IPR.
These amendments shall help MSMEs and Large Industries to set up new units as well as in Expansion, Modernisation & Diversification of existing units, which will create new avenues for employment.