Jammu Kashmir MSMEs writes to Arun Jaitley demanding monthly refund of fiscal incentives instead of quarterly returns

New Delhi, Oct 24 (KNN) Raising concern over the announced provision of availing fiscal incentives on a quarterly basis, the industry of Jammu and Kashmir comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) have written to Finance Minister Arun Jaitley demanding reforms into the provision.

Industry body Bari Brahmana Industries Association in a press release that that the industry is badly disturbed over the guidelines issued by DIPP as per Notification dated 5th October 2017.

Under the issued notification , the refund under the Central Package of Incentives is permissible on Quarterly basis instead of Monthly basis as defined in the Central Excise Notification 56 & 57/2002.

This the industry fears might lead to blockage of working capital  as it will take around four to six weeks after the submission of claim for taking the refund .

BBIA further informed that prior to GST regime, the refund of fiscal incentives was on monthly basis with the self credit procedure whereas no such provision was incorporated in the Notification dated 05-10-2017.

The industry fears that this might result in great financial crunch for the MSMEs.

BBIA further raised that the unwarranted conditions imposed by the Department might lead to great harassment that totally opposes ease of doing business claim of the government.

BBIA have written to both state government as well as central government demanding intervention for the  issue of necessary amendments of  the Notification with the refund of fiscal incentives on monthly basis instead of quarterly basis to provide relief to the Industrial Sector of Jammu and Kashmir. (KNN/DA)