The KKC will have adverse impact on the “Make in India” and “START up India” campaign of the Government as the manufacturers paying KKC on PROCUREMENT of their input services WOULD not be in a position to avail Cenvat credit of the same and thus would form part of their cost, LEADING to increase in prices to that extent. Further, there would be separate accounts, codes, records & computation, followed by corresponding peculiar Cenvat provisions, required to be maintained for KKC, going against the ease of doing business. Thus, imposition of KKC is LIKELY to hamper “Make in India” and “Start-up India” campaign of the Modi Government.

The KKC will have adverse impact on the “Make in India” and “Start up India” campaign of the Government as the manufacturers paying KKC on procurement of their input services would not be in a position to avail Cenvat credit of the same and thus would form part of their cost, leading to increase in prices to that extent. Further, there would be separate accounts, codes, records & computation, followed by corresponding peculiar Cenvat provisions, required to be maintained for KKC, going against the ease of doing business. Thus, imposition of KKC is likely to hamper “Make in India” and “Start-up India” campaign of the Modi Government.