Excelsior Correspondent
SRINAGAR, Feb 2: The Federation of Chambers of Industries Kashmir (FCIK) today urged the streamlining of the tax credit process for micro, small, and medium enterprises (MSMEs), demanding authorities ease the burden on them.
A spokesperson of FCIK said in a recent meeting with Commissioner P.K. Bhat and other key officials from the State Taxes Department, FCIK, led by former president Zahoor Ahmad Bhat, underscored the pressing need to grant MSMEs input credit based on proof of purchases, eliminating the current requirement of ensuring supplier compliance. “Zahoor Bhat argued convincingly that if the Goods and Services Tax (GST) law is stringent on defaulters, it should concurrently offer provisions for granting input tax benefits upon the presentation of valid invoices,” he said.
He said FCIK proposed the establishment of a mechanism facilitating MSMEs with input credit for taxes embedded in goods purchased from unregistered vendors. Emphasising an industry-friendly approach, he said FCIK called for a reduction in the high compliance burden imposed by GST laws, aligning these regulations with the spirit of ease of doing business.
Addressing various issues, including return filing, e-way billing, tax on advances, and notices from the tax department, he said FCIK advocated for a simplified mechanism for State Goods and Services Tax (SGST) disbursement to eligible MSMEs. “FCIK also sought an alternative, preferably cashless, mechanism for SGST reimbursement, aiming to minimise bureaucratic hurdles for MSMEs in Jammu and Kashmir,” he said.
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