GST may have adverse impact on Local Industry fears Industry body in Jammu

New Delhi, May 26 (KNN) Many crucial decisions were taken in the recent meeting of the GST council held in Srinagar. Evaluating the GST document, the industry body in Jammu fear that the GST will create disastrous impact on the local industry.

The Federation of Industries, Jammu (FOIJ) recently conducted meetings to dissect the GST that is to be rolled out in a month from now. The Federation feels that the government has failed in taking into consideration the interests of the local industry.

Elaborating further, the Federation said that there is no clarity in the GST bill regarding the incentives that are provided by the state and centre government. The Federation is of the view that until the existing incentives are incorporated in the new taxation policy, there will be more harm than good to the industry of the region.

The Federation also informed that earlier the Industry body had met the Finance Minister of the State Haseeb Drabu and had raised these concerns. Responding to which the finance minister assured that there will be a continuation in the incentives.

There region will not be able to attract any new investments in the absence of incentives. The Federation also fears that this might even impact the existing units as many big players on whom the local industry depends might opt to migrate to other states that are offering better incentives.

The local industry is instrumental to the economic growth of the state and also offers employment opportunities to a large section of the youth in the state, a downward trend in the industrial growth due to the GST will adversely impact the overall condition of the state.

The Federation has written to the Commerce Minister to immediately take these concerns into consideration to ensure a smooth transition into the GST regime that is announced to roll out from July 1. (KNN/ DA)