Jammu, Jan 30 (PTI) The State Administrative Council, headed by Governor Satya Pal Malik, has approved Jammu and Kashmir Reimbursement of State Taxes scheme to encourage investment for industrial development in the state, an official spokesman said Wednesday. Also Read - Jammu and Kashmir: Major Tragedy Averted as IED-Fitted Motorcycle Detected in Poonch

In the Industrial Policy-2016, the state has fixed a target of attracting an investment of Rs 2,000 crore per annum in the industrial sector, including services. Also Read - Army Sets Up 'Feedback And Grievances' Helpline in Kashmir to Strengthen Bond With Locals

The state government has already incentivised the existing industrial units by giving them reimbursements of taxes after adjustment of input tax credit under various schemes announced by the Centre from time-to-time. Also Read - Snow-laden Paradise: Intense Cold Conditions in Kashmir Valley, Gulmarg Chilliest at -11 Degrees Celsius

“In order to attract an investment of Rs 2,000 crore per annum, as envisaged in the Industrial Policy 2016, the SAC approved the ‘Jammu & Kashmir Reimbursement of State Taxes’ scheme for providing reimbursement of state taxes to the industrial units undergoing substantial expansion involving investment of Rs 50 crore or more, either on substantial expansion or new setup,” the spokesperson said.

He said the industrial unit will make claim of only the cash paid in the shape of SGST (State Goods and Services Tax) after adjusting the input tax credit. “The scheme shall be applicable only for intrastate supplies made by the industrial units,” the spokesperson said.

The scheme will not be applicable to the industrial units mentioned on the negative list to the Government of India notification dated 1st January 2019, covering units manufacturing tobacco, pan masala, plastic carry bags, power generating units above 10 MW, coke, fly ash, cement, steel rolling mills etc.

“The move will attract large investment, which in turn will expand employment opportunities for skilled youth, income generation and overall economic development in the state,” the spokesman said.

This is published unedited from the PTI feed.