When YSR Congress party president Y S Jaganmohan Reddy continues to talk about fighting for special category status to Andhra Pradesh, the ruling Telugu Desam Party leaders in Andhra Pradesh brushed aside his argument stating that SCS is a closed chapter now after Niti Ayog ruled out the possibility.
Chief Minister N Chandrababu Naidu even declared that the special category status granted to 11 states so far had also come to an end in April last and there would be no special incentives to industries or any other sops in these states, which would be treated on par with other states in devolution of funds. So, there is no question of AP getting any special status.
Though there was no counter from the YSR Congress party leadership, it has come from the Communist Party of India.
CPI state secretary K Ramakrishna pointed out that the Niti Aayog had revoked the SCS status and states which were already receiving benefits will continue to receive till 2027.
Enquiries revealed that Ramakrishna’s statement is true. Though it was not specifically mentioned about SCS, the Centre has declared in August that industries in the north eastern and Himalayan states will continue to get tax exemption till March 2027, albeit as refund, under the current Goods and Services Tax (GST) regime which was rolled out on July 1.
Union Finance Minister Arun Jaitely said within the framework of the GST Act each industry will be entitled to its own refund mechanism during this particular period (March 31, 2027).
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given approval to the Scheme of providing budgetary support under the GST regime for the eligible industrial units in Jammu and Kashmir, Uttarakhand, Himachal Pradesh, seven north eastern states and Sikkim.
The support shall be available for the residual period (10 years from the date of the commercial production) in the States of North Eastern region and Himalayan States. The DIPP will notify the scheme, including detailed operational guidelines for its implementation within six weeks, Jaitely said then.
Ramakrishna said it was a clear case of cheating and misleading by the Modi government. And the chief minister too has sought to mislead the people with his false claims, he added.
