Excelsior Correspondent
JAMMU, July 12: Dr Sanjay Bansal has appealed to Union Minister of State for Finance, Pankaj Choudhary for a significant increase in the budgetary allocation for the reimbursement of turnover incentives in Jammu & Kashmir.
He highlighted the disparity between existing manufacturing units and new units established under the Central Package of incentives (NCSS-2021).
While new units benefit from a 300% Gross GST reimbursement, existing units receive only the SGST paid on value addition, he said.
Dr Bansal said the current budget allocation covers only 25% of the turnover incentives prescribed by the Industrial Policy 2021, creating uncertainty among existing units.
Dr Bansal emphasized the urgent need to raise the budget allocation for turnover incentives from Rs 50 crores to Rs 500 crores, proposing an extension of the reimbursement period till March 31, 2031.
He pointed out that existing manufacturing units that undergo substantial expansion after April 1, 2021, are being denied GST-linked incentives for enhanced capacities and new product additions.
He also referenced notification SRO 63 of 2018, which grants budgetary support to manufacturing units in the form of state tax reimbursement, extended to the sector till March 31, 2031, via notification SO 243 dated July 16, 2021.
Dr Bansal requested a clarification from the MSME Ministry through a circular, ensuring that units that commenced operations before April 1, 2021, and subsequently expanded, are eligible for these benefits.
This clarification, he argued, would alleviate manufacturers’ concerns and resolve apprehensions among tax authorities, prompting necessary amendments by the State Industries Department.
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