Excelsior Correspondent
JAMMU, Oct 12: Federation of Industries Jammu (FoIJ, representing entire industry at Bari Brahamana, Gangyal, Samba and Kathua besides other districts, today warned to come out on the road and bind up operation of the industries, if the Government failed to make necessary amendment in DIPP Notification and issue the State Government Notification for the refund of GST on invoice value as promised without any more delay.
Addressing a joint press conference here today, Lalit Gupta Mahajan, co-chairman of FoIJ and president Bari Brahmana Industries Association (BBIA), Vijay Aggarwal- president Samba Industries Association, Ajay Langar- secretary general FoIJ, Sandeep Mittal from Kathua Industries Association, Romesh Badyal co-chairman FoIJ and others alleged that Union Government has back stabbed the Industrialists in the J&K state as they have just befooled and deprived them of the real industrial package as they were receiving from 2002 onwards. Despite promises made by the Union Finance Minister, Union Industries Minister, Union MoS Finance, State Chief Minister, Finance Minister Dr Haseeb Drabu, Industries Minister CP Ganga, DyCM Dr Nirmal Singh and State BJP chief Sat Sharma the industrialists have been feeling cheated.
They alleged that there seems to be some deep rooted conspiracy against the Industry in Jammu region. The Jammu Industry has been brought at the verge of closure. They were given only false assurance during every meeting but they were feeling most dejected after they came to know about the reality when the Union Finance Ministry issued Notification on October 5. They warned the Central and State Governments to honour their promises otherwise, Industrialists along with their thousands of workers would come out on highways at Kathua, Samba and Bari Brahmana and launch indefinite agitation in the form of protest dharnas. They also warned to bind up Industrial operations and said that about two lakh work force will lose job with this anti-worker anti-industry policy of the Modi Government. They termed it as `mockery of Ease of Doing Business’.
All these stake holders from J&K made an appeal to Prime Minister Narendra Modi, Union Finance Minister Arun Jaitley, Dr Jitendra Singh- Minister of State in PMO and Chief Minister Mehbooba Mufti to come to the rescue of Industry in the State and bring amendment in DIPP Notification with the refund of GST on invoice value instead of cash ledger and issue the State Govt Notification for the refund of GST on invoice value as promised without any further delay.
They strongly demanded amendment in the DIPP package of incentives on the existing scheme of budgetary support under Goods & Service Tax regime to units located in the J&K State, Uttarakhand, Himachal Pradesh and North East including Sikkim covers within its ambit only “Existing Units” which were eligible for benefit of ab-initio exemption prior to 01.07.2017. It discourages new investment in the J&K State as well as proposed scale up by existing industry.
They said the erstwhile policy if proposed to be substituted by the new scheme adhoc. The provisions of sunset clause of maximum three years up to 2020 has been over looked. There is reference to special rate provision for units with higher value addition than prescribed. The procedural compliance and compliances in this regard needed to be simplified for timely compensation of benefit to suffering units.
The calculation of incentive benefit has been fixed on the basis of cash ledger payment after utilization of input tax credit of Central tax and integrated tax. The same is different from the refund/benefit provision method in erstwhile notification wherein the refund was sanctioned on lower of gross duty and Cash PLA payment. The same will cost industry significantly in terms of revenue unless the same is recalibrated and refund fixed on the basis of transaction value.
They said the process of refund sanction still remains lengthy and not advantageous forcing intermittent compliance from our end. The refund documents filing should be routed through e-filing portal and approval also should be made electronically. There should also be a ceiling on the time period of refund sanction.
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