In a significant relief to industrial units operating in the Union Territory of Jammu and Kashmir, the Government of Jammu and Kashmir, through its Finance Department, has issued 3 Notifications vide S.O. 267, S.O. 268 and S.O. 269, all dated October 15, 2026, introducing amendments to the existing Budgetary Support Schemes for reimbursement of State Taxes and 42% of Central Tax paid under the Goods and Services Tax (GST) regime.
The amendments aim to provide another opportunity to eligible industrial units that could not submit their reimbursement claims within the prescribed timelines, while also modifying the eligibility provisions relating to edible oil manufacturers.
One-Time Opportunity to File Pending Reimbursement Claims Within Two Months
Vide S.O. 267, S.O. 268 and S.O. 269 dated October 15, 2026, the Government has substituted the fifth proviso to Clause 5.1 of the respective Budgetary Support Schemes, allowing eligible industrial units that failed to file their claims within the stipulated timelines before the issuance of these notifications to submit their pending reimbursement claims within two months from the date of issuance of the notifications, i.e., by December 15, 2026.
However, the benefit is subject to the condition that the concerned industrial units must have filed all returns due under Section 39 of the Jammu and Kashmir Goods and Services Tax Act, 2017, and paid the tax due thereon along with applicable interest, if any.
This relaxation provides an important opportunity to eligible industrial units to claim budgetary support benefits that could not be availed earlier due to delays in filing claims.
S.O. 267 – Amendment to Budgetary Support Scheme for Reimbursement of State Taxes
Through Notification S.O. 267 dated October 15, 2026, the Finance Department has amended SRO 63 of 2018 dated February 5, 2018, which provides budgetary support to manufacturing units in the form of reimbursement of State Taxes paid under the Jammu and Kashmir Goods and Services Tax Act, 2017, for the promotion of small, medium and large-scale industries in the Union Territory.
The notification permits eligible industrial units to file their pending reimbursement claims within the specified two-month period, subject to compliance with the prescribed GST return filing and tax payment conditions.
Further, the Government has amended Entry No. 4 of Annexure-A, replacing the expression “Edible Oil and Vanaspati Ghee” with “Edible Oil (except the oil extracted directly from oil seeds) and Vanaspati Ghee”.
Accordingly, edible oil extracted directly from oil seeds is no longer covered by the specified description in the amended entry, which may have implications for determining the eligibility of the concerned manufacturing units under the scheme.
S.O. 268 – Similar Relief under Budgetary Support Scheme Notified through SRO 519 of 2017
Vide Notification S.O. 268 dated October 15, 2026, the Government has amended SRO 519 of 2017 dated November 21, 2017, relating to budgetary support for reimbursement of State Taxes paid under the J&K GST Act, 2017.
The amendment similarly enables eligible industrial units that failed to submit reimbursement claims within the prescribed period to file their pending claims within two months from the issuance of the notification, subject to filing of all applicable Section 39 GST returns and payment of tax along with applicable interest, if any.
Additionally, Entry No. 6 of Annexure-A has been amended to replace “Edible Oil and Vanaspati Ghee” with “Edible Oil (except the oil extracted directly from oil seeds) and Vanaspati Ghee”, thereby modifying the description of the relevant goods under the scheme.
S.O. 269 – Extension of Relief to Units Claiming Reimbursement of 42% of Central Tax
In another significant measure, the Government has issued Notification S.O. 269 dated October 15, 2026, amending SRO 521 of 2017 dated November 21, 2017, which provides budgetary support through reimbursement of 42% of Central Tax paid under the Central Goods and Services Tax Act, 2017, to eligible manufacturing units operating in Jammu and Kashmir.
The amendment allows eligible units that missed the prescribed claim-filing deadlines to submit pending claims within two months, subject to compliance with GST return filing and tax payment requirements.
The notification also amends Entry No. 6 of Annexure-A, substituting the earlier description “Edible Oil and Vanaspati Ghee” with “Edible Oil (except the oil extracted directly from oil seeds) and Vanaspati Ghee”.
Effective Date and Implications for Industry
All three notifications have come into force with effect from October 15, 2026, being the date of their issuance.
The amendments are expected to provide relief to eligible manufacturing units that were unable to avail budgetary support benefits due to delayed filing of reimbursement claims.
At the same time, the revision concerning edible oil extracted directly from oil seeds is an important change requiring examination by affected manufacturers to determine their eligibility under the respective schemes.
Industrial units intending to avail the relaxation should ensure timely submission of their pending claims and compliance with the prescribed GST return filing, tax payment and applicable interest requirements.
Importantly, the two-month relaxation applies to eligible units that had failed to file their claims before issuance of the notifications and should not be interpreted as an unconditional extension of all reimbursement claim-filing deadlines.
