One major apprehension of State industrialists with regard to the extension of GST to the State was that after Excise Duty ceased to exist under new tax regime, the exemptions extended to them will end and this would have adverse impact on the industries. The body of industrialist expressed their concern to the authorities and sought clarification on this issue. Finally the State Government, after conducting study in the issue, came to the conclusion that the apprehensions were not unfounded and that something had to be done to alleviate the fears in a way that the industrial development in the state was not hampered. Consequently, in a major decision aimed at providing respite to the industrialists, the State Government has approved tax incentives for industry sector and a detailed notification specifying the eligibility and mode of disbursement will be issued in next few days. Moreover, the Government of India has agreed to further extend non-tax incentives under Industrial Development Scheme for Jammu and Kashmir till 2020.
This measure is going to bring great relief to the state industry sector. We appreciate that both the State Government and the Central Government are aware of the importance of their role of industries in helping improve and grow the economy of the state. As such the incentives offered are a big step towards reassuring the industrialist that their concerns are taken care of. Again in a notable decision, the Cabinet has decided reimbursement of remaining 42 percent of the Budgetary Support Scheme of the Union to the units located in the State till the period the Union Scheme is valid. The Cabinet has also decided reimbursement of 100% of SGST paid by the eligible units after utilization of input tax credit and the Finance Department has been asked to issue a detailed notification specifying the eligibility and mode of disbursement.
It is an established fact that industrial growth needs incentives in various ways including tax regimes so that smooth and quick development is possible. There is great scope of development of State industry provided proper direction and incentives are available.
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