Excelsior Correspondent
JAMMU, Dec 12: Associ-ation of Industries (AoI) Gangyal has urged upon the State Governor to come to the rescue of industry in J&K which is at the verge of closure due to wrong policies of the Government .
An emergency meeting of the members of the Association was held today under the chairmanship of Rattan Dogra, its president, where members unanimously showed concern towards the grim situation of the MSMEs because of the negligent attitude of the State Government. They pointed out that the Micro and Small scale units set up by the local entrepreneurs are facing militancy since last 30 years, have limited marketing avenue and 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VAT remission incentives to the such units from 2005 for their survival in Pre-GST regime but the same incentive was withdrawn in Post-GST regime and only incentives of SGST refund on the Value Addition was given from 08-07-2017 which is equal to the ¼th amount of the incentive prior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.
Although the Government, announced the meagre 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.
They alleged that Government has caused discrimination while granting the fiscal incentives to the Micro & Small Scale units of the State, not covering 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. There is also discrimination in providing Freight Subsidy by imposing condition of 1000 kilometers and beyond also.
They urged upon the Governor to provide 100% SGST refund of the invoice value, to provide 100% CGST refund on value addition, remove negative list on budgetary support in lieu of 2% CST exemption, provide freight subsidy to all the units on their sales from unit to destination without condition of 1000 kilometres.
The meeting was also attended Bansi Lal Gupta, Ashok Jain, Pardeep Vaid, Sandeep Ohri, LV Puri and others.
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