GST: Industry in Jammu and Kashmir fear severe crisis as incentives not restored

New Delhi, July 18 (KNN) With the implementation of the Goods and Services Tax (GST) in Jammu and Kashmir, the industry comprising of over 70 per cent Micro, Medium and Small Enterprises (MSMEs) fear severe crisis for the sector as the previous incentives aren’t restored under the new tax regime.

Talking to KNN, Rajesh Jain, Chairman of the Federation of Industries, Jammu explained the situation.

He informed that industry in Jammu and Kashmir industries especially the MSMEs thrived on the incentives given by the state and central government in the previous tax era. With the coming of the GST, the industry without any such incentive would land up in deep crisis.

The earlier incentives pertaining to VAT remission, Cashless VAT refund through SICOP on purchase of raw material and CST exemption on sales outside the State for finished products are no longer applicable ever since the GST got implemented. In the absence of the incentive provisions, the industry in the region is starting to suffer.

Jain said that the industry have been demanding this even before the GST was implemented and the government did assure for the continuation of the incentives, yet an official notification is not issued causing the industry to suffer.

He also informed that different industry bodies including Federation of Industries Jammu (FOIJ) , Federation Chamber of Industries Kashmir and Bari Brahmana Industries Association (BBIA) held a meeting with Finance Minister of the State Dr. Haseeb Ahmed Drabu recently demanding the immediate issuance of notification for the incentives.  The Minister did consider the demands and assured that both the central government as well as the state government is in the favour of providing incentives.

“While the assurance is of some relief, but till we get the official order, our fears might continue” added Jain.(KNN/ DA)