Jammu, June 22 (KNN) Those opposing and willing to delay GST in Jammu and Kashmir do not understand the benefits of nationwide one tax regime benefiting traders, manufacturers, common man and the Government as well, said Federation of Industries Jammu (FOIJ). 

Hailing that implementation of GST will help simplifying multitude of taxes and duties into one tax structure, FOIJ said the cascading effects of various taxes would be subsumed into one tax with the benefit of input tax credit of already paid taxes.

In the long run it is expected to lower costs and increase demands, stressed the industry body for state MSMEs.

Transit time for movement of goods will also be substantially reduced with lesser check-posts and reduced interface with Government officers, FOIJ said adding units will have to deal with a single tax authority.

“The process of unifying all taxes and duties into one tax has been going on for the last ten years and now through discussions and nationwide consensus the GST is being rolled out from 01st of July-2017,” Rajesh Jain, Chairman, FOIJ said.

He said, “J&K is yet to adopt and pass the legislation. Apparently those wanting to oppose and delay GST perhaps not understood the benefits of nationwide one tax regime benefiting traders, manufacturers, common man and the Govt. as well.  Apprehensions have been created  that adoption of GST will erode the fiscal autonomy of the State. This is largely incorrect as the State legislature has powers to make laws with respect to Goods and Services Tax imposed by the Union or by the State.”

He further said, “Those wanting to make this a political issue will be causing immense harm to trade and industry and eventually the state itself. If GST is not implemented along with the rest of the country there will exist a fiscal chaos as it will not be possible to import goods within the State.”

FOIJ members agreed that the Central Excise laws will cease to exist with effect from midnight of 30th of June-2017 and industry will be unable to sell or purchase goods.

It will have no option but to close down resulting in laying off and even retrenchment of lakhs of labour who are directly and indirectly employed, FOIJ said.

The implications of such action perhaps not fully being realized by those opposing or wanting to delay the implementation of GST from 01st of July-2017. It would not be out of place mention that thousands of crores advanced by Banks and financial institutions will be in jeopardy,  the association cried.

FOIJ acknowledged that to support and encourage the industrial sector in J&K State, the Central and State Governments have provided various fiscal incentives.

FOIJ highlighted that the Ministers and Officials from the State Government, in a recent meeting with FOIJ, had assured that all fiscal incentives being availed, as on date, will continue in a suitable manner even after GST is implemented in the state.

Meanwhile, all States and Union Territories but one, Jammu and Kashmir, have approved the State Goods and Services Tax (SGST) Act.

The State of Kerala issued an Ordinance on Wednesday approving State GST Act while the State of West Bengal had issued an Ordinance in this regard on 15th June, 2017. (KNN Bureau)