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| AoI appeals Governor to save business | | | Early Times Report
JAMMU, Dec 12: Association of Industries appealed to Governor to save the existing industry and take certain immediate remedial measures.
As per press statement issued, an emergent meeting of members of Association of Industries (regd.), Gangyal was held today under the chairmanship of Rattan Dogra, President, AoI-Gangyal, Jammu. The members present in the meeting unanimously showed concern towards the grim situation of the MSMEs because of the negligent view of the State Government.
The meeting was attended by other office bearers, namely- Bansi Lal Gupta, Ashok Kumar Jain, Pardeep Vaid, Sandeep Ohri and Sdr. Lavinder Singh Puri including prominent members of the Association - Ajay Anand, Rajesh Jain, Bipin Sharma, Sweesh Anand, S. B. Abrol, B. B. Talwar, Abhinandan Singh, Romesh Sethi, Pankaj Chopra and Virendra Jain were also present. It also states that it was worthwhile to mention here that the Micro & Small scale units set up by the local entrepreneurs 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 100% VAT remission incentives to the such units from 2005 for their survival in Pre-GST regime but the same incentive was withdrawn in Post-GST regime and only incentives of SGST refund on the Value Addition was given w.e.f. 08-07-2017 which is equal to the ¼th amount of the incentive prior to GST regime (virtual denial). This would result into closure of the units retrenchment of around 70000 to 80000 local industrial workers.
It further states although the Government has announced the meager incentives but the same are not available to most of the industry because certain new conditions have been imposed on their release viz. employment clause wherein the entrepreneurs have to provide 90% local labour out of the total employment be it skilled, unskilled. While maintaining strength of 90% local labour, the unit holders shall have to retrench the existing employment which is against the standing labour laws. Besides, it is also not possible to replace the highly skilled labour working on hi-tech machines by unskilled local labours which will be highly detrimental for the industry.
It is pertinent to mention here that State Government 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 industrial units covered under the Central Excise prior to GST vide SRO No. 521 dated 21-12-2017 and 58% CGST by the Central Government also to units covered under Central Excise. No such incentives has been given to Micro and Small scale units of the State by Central/State Government resulting in unhealthy competition between the units holders selling the same product within the State.
It states there is also discrimination in providing Freight Subsidy by imposing condition of 1000 kilometers and beyond also. The Government has extended 2% budgetary support in lieu of CST exemption to selected few industries by imposing a new negative list barring them to avail this incentive. It is again discriminatory and seems as Government is caring only for a selected industrial segment.
Considering all these factors and models of incentives, the Government has backed out of commitments and promises to extend the same quantum of incentives existing prior to GST regime to industrial sector for their sustainability and has made instead a selective approach adopted ignoring the large small scale sector comprising more than 7000 micro and small industrial units.
It was resolved that the President would appeal to Hon'ble Governor to save the existing industry by taking certain immediate remedial measures to provide 100% SGST refund of the invoice value, to provide 100% CGST refund on value addition, to remove negative list on budgetary support in lieu of 2% CST exemption and freight subsidy be provided to all the units on their sales from unit to destination without condition of 1000 kilometres. |
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