Jammu: In a meeting held here today the Bari Brahmana Industries Association (BBIA) has impressed upon the state government for issuance of notifications for the Budgetary Support to the Industrial Units of J&K as approved in the State Budget proposals 2018-19.
The meeting which was held here today under the Chairmanship of its Chairman Lalit Mahajan, the members stressed the need for issuance of notification which contains details of suitable amount of incentives in lieu of 2% CST and freight subsidy for the interstate sale of goods.
It is pertinent to mention here that prior to GST regime, the CST was exempted as an incentive on the interstate sale on goods by the industrial units to compensate the additional cost of raw materials and keeping in mind the above facts, POST GST budgetary support was approved in the state budget 2018-19 for the refund of suitable amount in lieu of 2% CST.
In respect of freight subsidy incentive, as approved in the budget proposal 2018-19, the same was considered keeping in mind the additional cost for the dispatch of finished goods for interstate sale by the industrial units of state to compete with the units located in the other parts of the country and also to provide the relief to the units working on job work basis prior to the GST regime.
It is pertinent to mention here that the requisite notifications for the refund of suitable amount in lieu of CST and Freight Subsidy not yet issued by finance department resulting uncertainty prevailing in the mind of industrial units who have no option but to curtail their production and retrench the work force as it is uneconomical for them to sell their products in the domestic as well as national and international market and we fear that any further delay in the issuance of notifications may be resulting in the closer of number of units in near future as they may opt for the shifting of their production base near to the market which may be resulting in the flight of the industrial capital from the state and substantial increase in the unemployment graph of our state.
Further the position is more serious for the survival of Micro & Small Scale units not covered under the central excise prior to GST regime as these units not given any benefit for the refund of CGST resulting stiff competition from the units getting refund of 100% CGST under the central/state Govt. SRO’s.
In respect of future Industrial Growth in our state, It is reported that no new investment is coming in the state due to non availability of reimbursement of Income Tax and Central GST Incentives at par with the north eastern states. Further while going through the SRO,s issued by the state no incentive of CGST/SGST is available to the new units and units under substantial expansion resulting road blockage for the new industrial investment in the state.
The members further urged the Chief Minister Mehooba Mufti as well as Dy. CM Kavinder Gupta and Minister for Finance Syed Mohd Altaf Bukhari to kindly intervene in the matter for the Issuance of pending notifications of budgetary.
Those present in the meeting includes Suresh Mahajan Sr. Vice President, Varun Singla Vice President, Ajay Langer General Secretary, Vivek Singhal Secretary, Viraaj Malhotra Treasurer BBIA besides other members of the association.