JAMMU, June 12: PHDCCI delegation led by Rakesh Wazir and Kuldeep Gupta, Co-Chairpersons, PHDCCI Jammu Region Chapter today called on Gyan Sarvar, Commissioner CGST, Jammu.
The PHD Chamber of Commerce & Industry Jammu Region Chapter received number of representations and requests from Trade and Industry members for early resolution of the issues as insertion of Notification 01/2010-CE in the Rule 12 of Cenvat Credit Rules, 2004 from the date of issue of notification, issues concerning e-office procedure, Budgetary support, GST refund filing and concern, GST exemption on Agriculture produce for plywood manufacturing Industry etc.
Wazir briefed Commissioner CGST as how there was zero tax on services offered by the hotel industry in J&K and now it has been charged under GST regime and held a brief discussion on how the hotel Industry can be compensated and benefited. The Central Government had also granted exemption from payment of Central Excise duty vide Notification No.01/2010-CE dated 6.2.2010 for the Industrial units located in the Jammu & Kashmir after having undertaken substantial expansion/new units which got their expansion case approved from the competent authority.
He said the notification No.01/2010-CE dated June 2, 2010 has to be inserted in the Rule 12 of Cenvat Credit Rules 2004, the same was inserted later vide Notification No.02/2014-CE (NT) dated 20.1.2014. The period from 6.2.2010 to 20.1.2014 has left as a result, the Revenue Department has denied Cenvat Credit to the buyers of Inputs/Capital goods who purchases goods from the units availing exemption under Notification No. 01/2010-CE dated 6.2.2010. Since the Government had no intention to deny Cenvat Credit to the Units. The issue needs to be taken up in the Board by the Revenue Department also to avoid unnecessary litigations.
Wazir explained that the procedure prescribed in the Central Secretariat Manual of e-office procedure intends to enable the office procedure in ICT (Information and Communication Technology) enabled environment. This takes care of the present scenario demanding simplified, responsive, effective and transparent working of Government with the help of State of Art, Cost effective, technologies available in the market. The procedure is such that all files are moved through e- Portal, no physical movement of files is required. Concern is, if any applicant wants to know the status he cannot check online. PHDCCI requested that an access is also granted to the applicant in E Portal to keep a track.
Kuldeep Gupta, Co Chairman mentioned that GST exemption on Agriculture produce for plywood manufacturing Industry. Local plywood manufacturing industry is purchasing raw material (Agro timber) from farmers directly which is exempted under GST (being Agriculture produce), Industry has to get the tax adjusted in advance at the time of purchase ( wood). The industry engaged in Timber related Industries is unable to take GST input credit, as the purchase is from unregistered persons (farmers). Some mechanisms should be designed to give exemption under SGST Refund claim or benefit to plywood manufacturing industry, which is otherwise (Refund claim) is not allowed by the Deptt. as the purchase is directly from farmer.
Gyan Sarvar gave a patience hearing and suggested the issues should be taken up by PHDCCI at the central level and suggested that a memorandum should also be send to GST council.
The meeting was attended by C L Dogra, Additional Commissioner, Jayapal J, Assistant Commissioner, Rahul Sahai, Ajay Gandotra, Shantanu Gupta, Sanjay Gupta, Vivek Bhardwaj and Aditya Vaid.