J&K Industries Facing Closure and Urgently Appealing for Resolution; GeM Portal Impact, SGST Refund Dilemma

Jammu, 31-07-2023: A joint meeting of the Executive Committee and Advisory Committee of the Association of Industries (Regd.) Gangyal was held under the Chairmanship of its president  Tejwant Singh Reen to discuss various issues/problems pertaining to the existing industries.

The president informed the worthy members that all issues which were discussed in the meeting stand flagged/submitted to the Govt. but unfortunately not a single issue has been resolved by the UT Govt. till date. The President of AOI stated that we are happy if fresh investments come to UT of J&K and in the meantime UT Govt. has to take care of the existing industry by providing the declared incentives well in time.

The Govt. after due deliberation announced vide Govt. Order No. 127-Ind. of 2021 dated: 21.05.2021 for 2% & 3% turnover incentives to the existing industry. This incentive with certain conditions that the maximum turnover of the financial year 2017-18, 2018-19, and 2019-20 whichever is higher will be considered, and only 50 crores provision was made by the Govt. for disbursement to the eligible units.

It is pertinent to mention that the turnover incentive claims were submitted to the various District Industries Centre’s to the tune of Rs. 176 crores in the Jammu Division and nearly Rs. 30 crores from the Kashmir Division and till date, no disbursement has been made by the Govt. to the unit holders. The unit holders have already passed on 2% & 3% incentives to their clients just to compete in the market.

Discussions were also held regarding the marketing of industrial goods through the GeM portal. Abruptly the Govt. started purchasing of various items for the Govt. departments through the GeM portal, resulting that nearly 25% of industries which earlier were supplying their quality goods to the various Govt. Departments through SICOP and other Govt. agencies are closed or are on the verge of closure as they cannot compete with the rates outside the J&K UT State. It is a proven fact that there is an extra cost of production from 6-8% for manufacturing industrial goods in the UT of J&K. The earlier Industrial Policy formulated by the Govt. had provided 20% Price Preference and Purchase Preference to the industrial units. The present Govt. will be fully responsible for the closure of the industry on account of not providing Price Preference & Purchase Preference. We urge and request the UT Govt. to consider our request by providing Purchase Preference on the GeM portal and save the industry from closure.

 It was also discussed in the meeting that the Commercial Tax Department is not accepting the claims of SGST refund from unit holders who have invested huge amounts in substantial expansion as per  Jammu & Kashmir Industrial Policy 2021-30 which reads as Head Substential Expansion means ‘an additional investment of minimum twenty-five percent of the total amount of investment already made in the existing unit’ in the plant and machinery (for manufacturing sector), or construction of building and other durable physical assets (for service sector) for the purpose of enhancement of capacity, modernization, diversification or additional line of activity. Denial of this declared incentive is violation of Govt. Order No. 117-Ind. of 2021 dated: 19.04.2021 reference Administrative Council decision No.46-7/2021 dated: 09.04.2021.

 Our submission/request to Govt. to look into all the issues for an early resolution.

 The meeting was also attended by the following office bearers namely S/Sh. Ashok Kumar Jain, Sr. Vice President, Sandeep Ohri, Vice President, Pardeep Vaid, General Secretary, Ajay Kumar Mahajan, Secretary, Vishal Gupta, Treasurer.

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