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The tax exemptions enjoyed by companies under the previous VAT regime will not be applicable under GST. The govt. has a scheme in place to solve this.
Updates from 07th July, 2017
Tax exemptions, as applied under the VAT rule, will not be a part of the GST regime. This will affect companies and states that benefited from area-based excise exemptions under the VAT policy.
The GST Reimbursement Scheme, which was supposed to be in place before July 1st, is on fast track currently, so that the companies based out of these states do not face any crunch in working capital, and can function as usual.
As reported in The Economic Times
