MSMEs in J&K appeal for the issuance of notifications under budget 2018-19 for industries

New Delhi, May 11 (KNN) Micro, Small and Medium Enterprises (MSME) body Bari Brahmana Industries Association (BBIA) has urged the Chief Minister of Jammu Kashmir Mehbooba Mufti , Dy.Chief Minister Kavinder Gupta &  Finance Minister Syed Mohd Altaf Bukhari to intervene in to the matter for the Issuance of pending notifications of Budgetary Support to the Industrial Units of J&K.

BBIA made the appeal at the meeting of the Members of the Bari Brahmana Industries Association that held under the chairmanship of Lalit Mahajan Chairman Federation of Industries Jammu & President BBIA in the presence of other members of BBIA.

In the meeting, members discussed the issue in respect of Non Issuance of respective Notifications for the Budgetary Support to the Industrial Units of J&K as approved in the State Budget proposals 2018-19 which includes suitable amount of Incentives in lieu of 2% CST and Freight Subsidy for the Interstate Sale of goods.

During the course of discussion, members claimed that prior to GST regime, CST was exempted as an incentive on the interstate sale on goods by the industrial units to compensate the additional cost of raw materials and on that basis,post GST budgetary support was approved in the State Budget 2018-19 for the refund of suitable amount in lieu of 2% CST which has not been yet issued by the Finance Department.

On similar lines, Freight Subsidy Incentive has not been issued so far, that was approved in the Budget Proposal 2018-19, keeping in mind the additional cost for the dispatch of Finished Goods for Interstate Sale by the Industrial Units of J & K to compete with the Units located in the other parts of the Country and also to provide the relief to the Units working on Job Work basis prior to the GST Regime, said BBIA members during the meeting.

Due to non issuance of budgetary support as approved in the State Budget of 2018-19 industrial units have left with no option other than curtailing the production and retrench the workforce as it is uneconomical for them to sell their products in the domestic as well as national and International market, BBIA raised.

Further, they reported that no new Investment is coming in the State due to non availability of reimbursement of Income Tax and Central GST Incentives at par with the North Eastern States and  no Incentive of CGST/SGST is available to the new units and units under substantial expansion resulting in road block for the new idustrial investment in the state.

BBIA appealed the concerned authorities to take the matter seriously and requested for no further delays.

They also appealed the Minister to take up the matter with the central government for the extension of income tax reimbursement and reimbursement of Central/State GST to attract new industrial investment in the state for employment generation. (KNN Bureau)