Demanding complete reimbursement of state and centre Goods and Services Tax to local manufacturing units, industrialists from Kashmir and Jammu division today said that majority of unit holders in the state would be forced to close their operations due to impact of GST, if the state does not provide some support to them. According to a statement issued by the FCIK, a joint delegation of Federation Chambers of Industries Kashmir (FCIK) and Federation of Industries Jammu (FOIJ) led by their presidents Mohammad Ashraf Mir and Rattan Dogra today met Finance Minister Haseeb A Drabu in Jammu and discussed various issues confronting Industries of Jammu and Kashmir with the implementation of GST.
The delegation, according the statement, apprised the minister about the impact industries in the state is facing with the implementation of GST and said majority of units will have to close operations in case state does not come out in support of local manufacturing units as was done earlier. “The minister was also reminded of the circulars issued earlier which only benefit handful industries of the state keeping majority high and dry,” it said.The delegation pitched for a complete reimbursement of SGST and CGST which only can save the industry of state.
“Local manufacturing unit which was getting a cushion of about 13 percent previously against an outsider is now in open competition with outside big manufacturers,” the delegation said. “The local small manufacturing units work in adverse and hostile conditions at the dead end and geographically disadvantaged position cannot sustain this harsh blow and as such need a special dispensation.” Besides this the delegation also discussed the issue of growing NPAs and demanded announcement for interest subventions in this regard in upcoming budget.
In the meeting, the issue of power surcharges and penalties was also discussed and a waiver was sought for industries. The issue relating to marketing of industrial products manufactured by local industries, price and purchase preferences and safeguarding the interests of local manufacturing units also came up for discussions and a suitable and genuine addressal in the upcoming budget was also sought. A special treatment for sports goods industries was also discussed in the meeting. The minister was requested to have a special package for the industrial sector of J&K in the coming budget.