New Delhi, Nov 30 (KNN) MSME body, Bari Brahmana Industries Association (BBIA) expressed serious concerns over the sharp decline reported in the industrial growth in the state of Jammu & Kashmir in post GST regime due to non availability of fiscal incentives to the new units and units under substantial expansion.

This has resulted in flight of capital from J&K state to other states nearest to the market, the association pointed.

BBIA has said that the situation is more serious as due to non-availability of the job avenues in state, the educated youths  have no option but to shift to other parts of the country to earn their bread and butter.

BBIA said “We fear that in case immediate remedial measures are not adopted by the Central/State Government for the grant of fiscal incentives at par with the North Eastern States to J&K State, the state will be converted in to a colony of old people in near future due to limited job avenues available in the government employment.”

The matter was discussed in a meeting of BBIA under the Presidentship of its Chairman Lalit Mahajan and in the presence of Ajay Langer, BBIA General Secretary, Vivek Singhal, BBIA Secretary, Viraaj Malhotra, BBIA Treasurer and other members.

Mahajan said, "The working of Micro & Small Scale Sector of the state is suffering very badly due to non-availability of above incentives to majority of the units due to conditions imposed by the Finance Department in respect of taking into account the Interstate Sales Turnover of 2016-17 for the grant of 2% Reimbursement of IGST. This had resulted into denial of 2% IGST Incentive to the Units who have not achieved the Interstate Sale prior to 2016-17 and after 01-04-2017.

In respect of freight subsidy scheme, the rule to give benefits only for dispatch of finished goods available only after the sale of goods beyond 1000 km distance is another drawback for MSME units from Kashmir/Jammu. This has made it difficult for local units here to avail the incentive for the sale of their goods in the neighboring States of Punjab/Haryana/ Himachal Pradesh and National Capital Delhi, said BBIA.

“It is the need of the hour to provide the 2% IGST to all the working units and units under expansion for the interstate of goods and also freight subsidy for interstate sale of goods up to destination, reimbursement of 42% CGST and adequate budgetary support to MSME Units having annual turnover less than 1.5 crores prior to GST for their survival,” said Mahajan.

He further asked for fiscal incentives for the industrial growth in the state for which thousands of crores of rupees have been spent by the state industries department for the development of new industrial estates in Jammu as well as in Kashmir.

The association requested the Governor Satya Pal Malik and Kewal Krishan Sharma, Advisor to the Governor to intervene into the matter to resolve the issue of MSME sector on priority basis, extend the present state fiscal incentives to new units and units under substantial expansion. (KNN Bureau)