A proposal to refund central goods and services tax (GST) on items made in formerly excise-free zones in Himachal Pradesh, Uttarakhand and the North-East is set to be presented to cabinet. The move will benefit companies such as Cipla, Dabur, Dr Reddy’s and TVS Motor that invested in those areas because of the tax break. Such exemptions have largely been scrapped under GST as part of efforts to create a common market across India with as few interstate variations as possible. The Expenditure Finance Committee (EFC) has approved the scheme, which is likely to benefit a number of automobile, fast-moving consumer goods (FMCG) and pharmaceutical companies that have invested in these zones. “EFC has cleared the scheme,” a senior finance ministry official told ET. It will shortly be introduced in the cabinet, he said. Hundreds of pharmaceutical companies including high-profile ones such as Cipla, Dabur, Dr Reddy’s, Johnson & Johnson and Wockhardt have plants in such zones in H