Excelsior Correspondent
SRINAGAR, Oct 25: The Federation of Chambers of Industries Kashmir (FCIK) today called for addressing disparities in the State Goods and Services Tax (SGST) reimbursement for manufacturing units selling goods outside J&K.
In a statement issued here, the organization emphasized the need to align these incentives with those offered to businesses selling within the Union Territory.
FCIK raised concerns about the exclusion of industrial units engaged in interstate sales of finished goods, stating that this creates inequities and discriminates against manufacturers crucial to the sector’s growth.
“We remind the Deputy Chief Minister of the government’s 2018 initiative under SRO-63, which aimed to provide budgetary support to manufacturing units after the withdrawal of VAT remission during the Value Added Tax regime,” FCIK stated.
The body highlighted that both intra-state and interstate manufacturers suffered from the withdrawal of previous incentives; however, it said, the exclusion of interstate suppliers from SGST reimbursement hinders the growth potential of local manufacturers looking to expand their markets.
“While manufacturers making both intra-state and interstate sales have equally suffered due to the withdrawal of prior incentives, excluding interstate suppliers undermines competitiveness and restricts expansion opportunities,” FCIK added in a letter sent to the Deputy Chief Minister.
The Federation further questioned the rationale behind this exclusion, arguing that supporting interstate suppliers is essential for the broader economic development of J&K
“Such support could boost production capacities, create jobs, and elevate the region’s status as a manufacturing hub. Additionally, enhancing exports could help improve J&K’s trade balance by reducing trade deficits, FCIK said.”
To promote fairness and inclusivity, FCIK urged the J&K Government to revisit this scheme and develop a revised policy that treats all manufacturers equitably, regardless of market reach.
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