Excelsior Correspondent
JAMMU, June 22: Federation of Industries Jammu(FoIJ), an apex body of various industrial organizations including Bari Brahamana Industries Association, Association of Industries Gangyal, Digiana Industries Association, today strongly demanded implementation of GST in the J&K from July Ist, 2017.
Addressing a joint press conference at Press Club here today, FoIJ Chairman, Rajesh Jain and Lalit Mahajan- president Bari Brahmana Industries Association (BBIA) claimed that implementation of Goods and Service Tax (GST) on its scheduled date ( July Ist) was must for the welfare and promotion of the industrial sector in the State. They said the GST regime will bring benefits in simplifying multitude of taxes and duties into one tax structure.
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They pointed out that the cascading affects of various taxes would be subsumed into one tax with the benefit of input tax credit of already paid taxes. In the long run, it is expected to lower costs and increase demands and moreover, transit in time of movement of goods from one destination to the other would substantially reduce with lesser check posts and reduced interface with the Government officers as well. Further, the units will have to deal with one tax authority, they maintained.
Jain said the process of unifying all taxes and duties into one tax has been going on for the last ten years and now through discussions and nationwide consensus, the GST is being rolled out from July Ist, 2017. However, our state is yet to adopt and pass the legislation. It seems that those wanting to oppose and delay GST perhaps not understood the benefits of nationwide one tax regime benefitting traders, manufacturers, common man and Govt as well.
It is unfortunate to note that apprehensions are being created implying that adoption of GST will erode the fiscal autonomy of the State. This is largely incorrect as the State Legislature has powers to make laws with respect to Goods and Service Tax imposed by the Union Govt or by the State. Those wanting to make this as political issue, will be causing immense harm to the trade and industry and the State itself. He said if the GST is not implemented along with rest of the country, there will exist a fiscal chaos as it will not be possible to import goods within in the State as industry and trade will not be able to supply valid GST registration Nos. The Central Excise laws will cease to exist with effect from midnight of June 30, 2017 and the industry will be unable to sell or purchase goods, Jain maintained.
Mahajan (BBIA president) and Jatinder Aul, president Digiana Industries Association said it is unfortunate that implications of such a situation, perhaps are not being fully realized by those opposing or wanting to delay the implementation of GST in the State. If not implemented, thousands of crores advanced by banks and financial institutions will be in jeopardy. To support and encourage industry in J&K, the Central and State Govts have provided various incentives and the continuation of the same is imperative in the GST regime. These incentives have been necessitated to offset the various disadvantages due to geographical location, higher cost of production and limited market avenues. They expressed satisfaction over the meeting held with the Chief Minister and Finance Minister at Srinagar on June 21 over the issue and said that Govt is keen to implement GST soon.
Other office bearers including Ajay Langar, Romesh Badyal, S B Abrol, Vijay Sharma, Sanjeev Vig, Suresh Mahajan, Varun Singla, Viraaj Malhotra, Gagan Jain and Sanjay Chopra were also present.
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