JAMMU, Feb 22: Federation of Industries, Jammu (FoIJ) has said that existing MSME sector of J&K UT has been totally ignored in the new Industrial Package announced by the Union Government.
Addressing a press conference here today, Lalit Mahajan, Chairman Federation of Industries, Jammu in presence of Jatinder Aul, Vijay Aggarwal, Ajit Lal Bawa Co-Chairmen FoIJ, Tarun Singla, senior vice president BBIA, Ajay Langer vice president BBIA, Viraaj Malhotra general secretary BBIA and others, said that existing local industrial units have been feeling neglected. There is strong resentment among units holders over this stance of the Government.
Mahajan said while going through the Notification No. F/1(1)/2020-SSS dated 19-02-2021 issued by Ministry of Commerce & Industry, Govt of India, serious concern was raised towards the uncertainty prevailing in the mind of working MSME Micro and Small Scale Industrial Units of J&K due to inadequate fiscal incentives granted with the denial of reimbursement of gross GST to existing units and unit under eubstantial expansion as per the said notification due to which unhealthy competition may be faced from the new investors in the State who will get the benefits of gross GST reimbursement of 300% on the investment of plant and machinery.
It is worthwhile to mention here that majority of the MSME Units set up by the sons of the soil working in the State facing militancy since last 30 years, with limited marketing avenues, higher production cost and keeping in mind the above facts, the Central/State Govt provided fiscal incentives from time to time but with the introduction of GST, the Fiscal incentives of State as well as Central Govt has been diluted in post GST regime and only Incentives of IGST/CGST/SGST Refund on the Value Addition was given from 08-07-2017 to existing units.
Moreover, no State Fiscal Incentive is available to units set up after July 8, 2017 resulting very limited growth reported against the IDS-2017 Scheme announced by Govt of India. “We fear that the working existing industrial units may opt for the clouser of their Units in future due to non availability of Central Govt fiscal incentives.
The FoIJ has appealed the Prime Minister Narendra Modi, Lt. Governor Manoj Sinha for their kind intervention for the modification in the said Notification with the grant of Gross GST reimbursement to existing working units and units under substantial expansion also and 5% Interest subvention to new units and existing units under substantial expansion with the grant of following State Fiscal Incentives which are under the active consideration in the proposed New State Industrial Policy 2021 for Existing Units, Units under Substantial Expansion & New Units for their survival. They also stressed for road freight reimbursement on the import of raw materials from outside the State and eport of Finished goods to other part of country, turnover incentives to all the units selling their products within the UT of J&K, budgetary support of 2% Turnover on Interstate Sale to all the Units as marketing support as per SRO 431 without any riders of 2016-17 sale, State CGST/SGST reimbursement benefits to existing units, units under expansion, new Units and the units covered under SRO 519/521 whose residual period is going to be expired in near future, renewal of Licences by the State Excise Department for the Import of Industrial Raw materials covered under the Excise Policy by Industrial Units for 5 years and exemption of Bottling Fee to Braveries working in J&K for the export their finished products to outside.