The good news for small and big scale industrialists of the State is that the Finance Department has issued SRO according to which budgetary support for eligible manufacturing units in Jammu and Kashmir is purported. Stated broadly the support is in the shape of 100 per cent re-imbursement of the State Tax paid (SGST) after utilization of the Input Tax Credit (ITC). The State would reimburse 42 per cent of the Central Tax paid (CGST) in addition to 58 per cent reimbursed by the Central Government under its existing scheme, after utilization of the Input Tax Credit under Jammu and Kashmir Goods and Services Tax Act, 2017.
Actually, the Finance Department has issued two SROs that deal with the reimbursement of tax as stated above. However, there are riders that lay down the criterion for an industrialist to become eligible for the tax reimbursement scheme. One condition has been that the manpower employed by the industrialists should be the citizens of the State. Along with this there are strict instructions that anybody making a false and fake statement to show enhanced output will be strictly dealt and will lose the right to claim for the reimbursement of the quantum of tax. Named as ‘Jammu and Kashmir Reimbursement of State Taxes and Central Taxes for Promotion of Industries in Jammu and Kashmir’, the two Schemes will come into operation with effect from 8.7.2017 for an eligible unit and will remain in force till the scheme namely “Budgetary Support under GST regime to the Industrial Units located in State of J&K, Uttarakhand, Himachal Pradesh and North East including Sikkim” exists.
This measure of the State Government taken after due consultations with the Finance Ministry is bound to bring some relief to the industrialists of the State. We are hopeful that more incentives and facilities provided to the industrial sector in the State will usher in a prospect of prosperity and satisfaction to the people of the State.
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