Jammu, June 19 (KNN) The Jammu & Kashmir MSMEs want clarity from the government, both Centre as well as States, over incentives that they would get under the Goods & Services Tax (GST) regime from July 1, 2017.

In this regard, a meeting of the Federation of Industries, Jammu (FOIJ) was held under the chairmanship of Rajesh Jain to discuss the matters related to implementation of GST.

“It appears that the Government has least priority in safeguarding the interest of local industry which is going to be adversely impacted unless and until the existing incentives are incorporated in the new regime,” FOIJ said post meeting.

At present there is no clarity on the fate of the existing incentives in the GST regime both from the State and Central Governments, FOIJ added. 

Jain highlighted that during earlier interactions with the State Finance Minister Haseeb Drabu, the latest held on June 12, 2017 at Srinagar, it was assured that the existing incentives such as remission of VAT, Excise refund and other prevailing fiscal incentives will be incorporated in the new GST regime.

“But till date no neither there is any notification nor has there been any specific discussions on the matter so how the industry is going to be accommodated in the GST regime,” the FOIJ Chairman questioned.

In the absence of incentives, no new investments will come from within and outside the State and even the existing industry faces closure with consequent large scale retrenchment. Further there will be flight of capital to other States and migration of educated / uneducated youth from Jammu to other States. Presently, the industry gives employment to lakhs of youth and is the primary job creator considering that no new government jobs are being created by the State, Jain said.

The industries representatives have urged the J&K Industries & Commerce Minister Chander Prakash to take up these issues with the Finance Minister of J&K State as well as the Central Government in order to get the issue resolved without further delay.

FOIJ has also appealed Chief Minister Mehbooba Mufti and Deputy Chief Minister Nirmal Singh to personally look into the matter failing which the J&K MSMEs will incur heavy loss from July 1, 2017. (KNN Bureau)