MSMEs in J&K worried as tax exemption under GST not applicable on entire sector

New Delhi, Aug 25 (KNN) Raising concerns over the announced incentive package by the Central government for the Hilly areas under the Goods and Services tax (GST), the Micro, Small and Medium Enterprises (MSMEs) of Jammu and Kashmir are worried over the non-applicability of the package on a major chunk of the sector.

Talking to KNN, Ajay Langer, General Secretary of the Bari Brahamana Industries Association (BBIA) informed that as per the announcement made by the Union Cabinet with regard to the incentives under GST for the hilly areas, the provisions are granted only to those Units who were getting Central Excise Benefits prior to the GST for their Residual Period up to 31-3-2027.

The main concern of the MSMEs right now is that no Incentives have been given to such existing units and the units who are in the process of substantial expansion that were not availing the central excise benefits & new units.  Langer added that prior to the GST Regime, thousands of micro and small scale units in the state  did not avail the excise duty incentives due to excise exemption up to 1.50 Crores but under the GST Regime the exemption is limited up to only 20 lacs.

This is a cause of great concern for the MSMEs that are deprived of the incentives under GST regime as per the central package of incentive announced by the government.

Earlier, last week, Association of Industries (AOI), an MSME body of Jammu and Kashmir  in a memorandum to the Finance Minister raised similar concerns and called for immediate attention to the issue. (KNN/ DA)