With the introduction of the GST, it was perceived by certain industries that the incentives offered by the government to incentivize industries and promote development in backward areas may have been curtailed. In this regard the decision of the Nagpur Bench of the Bombay High Court in the case of K. M. Refineries & Infraspace Pvt Ltd. is a welcome decision on the continuity of the erstwhile incentives in the GST regime.
The decision directs the state authorities to implement the incentive scheme as amended up-to-date with a discretion to modify the scheme to bring it in line with the new tax structure under the General Sales Tax scheme, but without reducing or restricting the benefits as conferred.
In this update we have discussed the key takeaways of the decision of the Bombay High Court.