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| BBIA says micro, small scale sector on verge of closure | | |  Early Times Report
JAMMU, Oct 18: BBIA said that the Micro and Small Scale Sector of the State on the verge of Clouser due to non- availability of State Fiscal Incentives as par with Pre-GST Regime
Addressing media persons at BBIA Office by the representative of Industries led by Lalit Mahajan Chairman Federation of Industries, Jammu in presence of Bansi Lal Gupta, Deepak Dhewan, Jatinder Aul, Ajit Lal Bawa Co-Chairmen FOIJ, Pardeep Vaid Secretary General, Ajay Langer Convener and members of Executive Committee Members of Federation of Industries Jammu raised serious concern towards the uncertainty prevailing in the mind of Micro and Small Scale Industrial Units of J&K due to inadequate Fiscal Incentives granted in post GST Regime to around 7000 to 8000 Units resulting great resentment amongst the Unit holders who are providing Employment to Local Youths.
They said, it is pertinent to mention here that State Govt. has done discrimination while granting the Fiscal Incentives to the Micro & Small Scale Units of the State not covered under the Central Excise prior to GST Regime by denying the 42% CGST whereas the same Incentive was given to the 300 to 400 odd Units covered under the Central Excise prior to GST vide SRO NO.521 dated 21-12-2017 by Finance Department and 58% CGST by the Central Govt. also to Units covered under Central Excise whereas no such Incentive given to Micro and Small Scale Units of the State by Central/State Govt. resulting unhealthy competition between the Units Holders selling the same product within the State.
Moreover, they also said that the State Govt. also extended the 2% Budgetary Support in lieu of CST and Freight Subsidy to 300 to 400 Such Units on the Inter-State Sale of the Goods for the reason best known to the Govt. whereas no such Incentive is given to Micro and Small Scale Sector of the State for INTRA-STATE Sale of Goods in spite of the fact that the Micro & Small Scale Units dependent on the Sale of their goods within the State resulting great resentment amongst the Unit Holders.
It is worthwhile to mention here that the Micro & Small Scale Units set up by the Sons of the Soil working in the State facing Militancy since last 30 years, limited marketing avenue, higher production cost and keeping in mind the above facts, the State Govt. provided VAT Remission Incentives to the such Units from 2005 for their survival by selling their products within the State in Pre-GST Regime but the same Incentive was withdrawn in Post GST Regime and only Incentives of SGST Refund on the Value Addition was given w.e.f 08-07-2017 which is equal to the 1/4th amount of the Incentive prior to GST Regime resulting most of the Units may opt for the Clouser of their Units resulting mass scale retrenchment of Local Industrial Workers. Further the position is more serious due to sharp decline in the Industrial Growth in the State of Jammu & Kashmir in post GST Regime due to non availability of State/Central Fiscal Incentives to the New Units and Units under Substantial Expansion resulting flight of Capital from J&K State to other States near to the Market.
They requested Governor Satya Pal Malik to kindly intervene in to the matter and grant the following Incentives to the Existing Micro and Small Scale Units of the State for their survival. |
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