Skip to main content

Investment promotion scheme: Notices to Centre, Rajasthan govt, GST Council

By
 Investment promotion scheme: Notices to Centre, Rajasthan govt, GST Council
The Rajasthan Investment Promotion Scheme, announced in October 2014, had given exemption from entertainment tax up to 50 % to multiplexes, water and theme parks, among other sectors for 7 years
Businesses have moved courts against the Rajasthan government's decision to not extend benefits earlier promised under the state investment promotion scheme, after the goods and services (GST) rollout.The high court at Jodhpur and its Jaipur bench have sent notices to the Union government, the Rajasthan government and the GST Council in these cases.
The Rajasthan Investment Promotion Scheme, announced in October 2014, had given exemption from entertainment tax up to 50 per cent to multiplexes, water and theme parks, among other sectors for seven years.There was exemption from entry tax for companies making investment of more than Rs 7.5 billion on capital goods.Similarly, relief from state value added tax in various sectors, to boost investments and create jobs.
However, after GST roll out, these benefits have been taken away. Though, the state Budget, presented in February, announced extension of these, no notification has come, said the people who have filed cases against the discontinuation of the scheme.Abhishek Rastogi partner with Khaitain & Co, who argued the writ petitions, said the businesses made investments on promises of the government.
They have legitimate expectations that these promises will continue.“Any deviation by the state government will be tested in courts, based on the principle of promissory estoppel,” he said.The principle means if a party changes position substantially on a promise, the other party can petition to enforce the promise, even if the essential elements of a contract are not present.
The Business Standard, New Delhi, 19th March 2018

Comments

Post a Comment

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

GST collection for November rises by 8.5% to Rs.1.82 trillion

By
  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...
Post a Comment
Read more