Excelsior Correspondent
JAMMU, Apr 28: Federation of Industries, Jammu today appealed to the Prime Minister Modi, Amit Shah Union Home Minister and Manoj Sinha Lt Governor, JKUT to save the existing Micro & Small Scale Industrial Sector of JKUT from closure as the existing MSME Sector and Service Sector totally ignored while granting the GST link fiscal incentives as per Notification No. F/1(1)2020-SSS dated 19-02-2021 issued by DPIIT, Ministry of Industry & Commerce.
While highlighting the issue Lalit Mahajan, Chairman Federation of Industries Jammu raised serious concern towards the uncertainty prevailing in the mind of working MSME units of J&K due to the denial of reimbursement of gross GST to existing units and units under substantial expansion as per the said notification due to which unhealthy competition may be faced from the new investors in the state who will get the benefits of gross GST reimbursement of 300% in the investment of plant and machinery.
It is worthwhile to mention here that majority of the MSME units working in J&K UT with limited marketing avenues, higher production cost and keeping in mind the above facts, the Central/State Govt always provided fiscal incentives from time to time in all the previous notifications of Govt of India/ State Govt issued since 2002 in which all the fiscal incentives granted to existing units as well as to Units under substantial expansion at par with the new units.
Pertinent to mention here that under the State Industrial Policy 2021 the SGST reimbursement incentives were given on value addition only to existing units for the reimbursement of SGST but the existing units under substantial expansion totally ignored for the grant of GST link incentives by State/Central Govt resulting great resentment amongst the existing unit holders who are providing direct & indirect employment to 4 to 5 lakh local people of JK UT.
Many units have reached at the verge of closure. Therefore, it is the need of the hour to provide GST linked fiscal incentives to existing units and units under substantial expansion at par with new units as per the Industrial Development Package 2021 to save the local existing working units from closure in near future, FOIJ said.
Follow our WhatsApp channel