Several manufacturing units in Sikkim are under investigation for allegedly availing undue benefits under the Scheme of Budgetary Support, 2017, introduced under the GST regime.

Based on intelligence inputs, officers from the Siliguri CGST Commissionerate have initiated action against the units reportedly claiming refunds in violation of the scheme’s provisions.

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In a press statement, CGST officials clarified that the scheme is applicable only to those business entities in Sikkim that were earlier eligible under the erstwhile Central Excise Area-Based Exemption scheme. The scheme essentially offers tax exemption benefits up to a prescribed rate of value addition.

“However, many units, including several large corporate houses, have been found claiming refunds based on a much higher rate of value addition, which is not permissible under the scheme,” the statement said.

The investigation has revealed that entities have been receiving excess budgetary support since the inception of the scheme in 2017. During summons proceedings, several firms reportedly admitted to having claimed refunds at higher rates than notified.

Preliminary findings indicate erroneous refund claims amounting to approximately ₹1,032 crore. Further investigations are underway.