BBIA hails J&K govt for granting fiscal incentives to existing MSMEs

New Delhi, Mar 7 (KNN) Bari Brahmana Industries Association (BBIA), an industry body for MSMEs in Jammu and Kashmir, has hailed the state government for granting fiscal incentives to the existing working Micro, Small and Medium Enterprise (MSME) units in tandem with pre-GST Regime.

BBIA also urged for extension of central package of incentives to new units and units under Substantial Expansion.

A meeting was organized by BBIA to discuss the sharp decline reported in the industrial growth since July 2017 in post GST Regime, due to non-availability of state fiscal incentives in manufacturing sector to new units and units under substantial expansion.

According to a press release by BBIA, no state fiscal incentive has been given to units established after the implementation of GST since July 2017 which resulted in the lowest level of industrial growth in last two decade.

“Before the implementation of GST it was assured that all the State/Central Governmnet incentives in the tune of Rs 1700 to 2000 Crores shall be continued in the GST Regime. But in post GST Regime the State/Central Government incentives reduced to even 1/4th of the total incentives available to industrial sector of Jammu and Kashmir prior to GST,” BBIA said.

“Whereas, no such clause exist in the package of incentives prior to GST Regime resulting majority of MSME working units  have no option but to close down their units in near future due to stiff competition in the market,” it added.

The position is critical as very limited growth has been reported in last two years in the industrial sector due to non-availability of state fiscal incentives to new units and units under substantial expansion for MSME Sector for inter-state sale and sale within the State. (KNN/JM)