JAMMU, May 9: Bari Brahmana Industries Association (BBIA) has urged upon the Government for issuance of notifications for the budgetary support to the industrial units of the J&K state.
A meeting of the members of the Bari Brahmana Industries Association was held today under the chairmanship of Lalit Mahajan, chairman of the Federation of Industries Jammu & President BBIA in the presence of Suresh Mahajan senior vice president, Varun Singla vice president, Ajay Langer general secretary, Vivek Singhal secretary, Viraaj Malhotra Treasurer BBIA and members of BBIA in which the members present in the meeting discussed the issue in respect of non -issuance of respective notifications for the budgetary support to the industrial units of J&K as approved in the State budget proposals 2018-19.
The BBIA president said 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 J&K 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 closure 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 J&K State.