Jammu, 19-08-2023: An Urgent Meeting of the Bari Brahmana Industries Association was held under the Presidentship of Sh. Lalit Mahajan in the presence of Sh. Tarun Singla Sr. Vice President, Sh. Ajay Langer Vice President, Sh. Viraaj Malhotra General Secretary, Sh. Rajesh Jain Secretary and Sh. Vivek Singhal Treasurer BBIA and other Members in which the issue regarding the uncertainty prevails in the mind of working Industrial Units due to the non-availability of Central Fiscal Incentives at par with the new Units under NCSS-2021 and SGST discussed in detail.
Grant of Fiscal Incentives at par with the new Units to Existing Units and units under Substantial Expansion as per the previous Notifications issued by Govt. of India from time to time
In this regard, we wish to draw the kind attention of Sh. Manoj Sinha Hon’ble Lt. Governor and Sh. Vikramjit Singh, (IPS) Commissioner Industries & Commerce Department towards the notification No- 1(1/2020-SSS) dated 19-02-2021 issued by Govt. of India as New Central sector Scheme for Industrial development of Union Territory of Jammu & Kashmir by the virtue of which GST Linked Incentive of 300% on the Investment in Plant & Machinery has been granted to New Unit to be established on or after 01-04-2021 under the said Scheme whereas no Gross GST Reimbursement Incentive has been given to Existing Units who Opt for Substantial Expansion resulting stiff competition being faced by the Existing Units from New Units to be established on or after 01-04-2021 under NCSS-2021.
During the course of discussions, the Members present in the meeting highlighted that in past prior to GST Regime, all the Fiscal Incentives at par with the New Units always granted to the Existing Units also Under Substantial Expension as per the previous Notification of Govt. of India/State Govt. since 2002 onwards till IDS Scheme 2017 by the virtue of which all the Fiscal Incentives always applicable to Existing Units under Substantial Expension whereas under the NCSS 2021 the Fiscal Incentives in the shape of Reimbursement of Gross GST Reimbursement not applicable to Existing Units if they go for the Substantial Expension after 01-04-2021 resulting numbers of Existing Units already in the process of closing down their Units or shifting to other parts of the Country as it is not possible for them to compete with the New Units in near future due to locational disadvantages, limited local Market avenues , higher transportation cost of Raw Materials and Finished Goods which may be resulting into mass scale retrenchment of Industrial Workers resulting rapid increase in the Unemployment graph of JKUT.
We wish to draw the kind attention of Hon’ble Lt. Governor Sh. Manoj Sinha and Sh. Vikramjit Singh, (IPS) Commissioner Industries & Commerce Department towards the grant of Fiscal Incentives at par with the new Units to Existing Units and units under Substantial Expension as per the previous Notifications issued by Govt. of India from time to time in the support our justification for the grant of Fiscal Incentives to the Existing Units and units under Substantial Expension also:-.
|
S. No |
Notification Detail |
Benefit |
Applicability |
|
1 |
Notification No.56/57 Dated: – 14-11-2002 |
Refund of Central Excise Duty |
Applicable to New Units as well as Units under Substantial Expansion |
|
2 |
Notification No F.No.1 (10)2012-SPS. Dated:-03-10-2013. |
Refund of Central Excise Duty |
Applicable to New Units as well as Units under Substantial Expansion |
|
3 |
Notification of IDS 2017 F.No-2(2)/2017-SPS Dated: – 23-04-2018 |
Reimbursement of GST and other Fiscal Incentives |
Applicable to New Units as well as Units under Substantial Expansion |
|
4 |
NCSS-2021 F. No. 1(1)/2020-SSS Dated: -19-02-2021 |
Reimbursement of 300% Gross GST on the value of Plant & Machinery. |
Not Applicable to Existing Units as well as Units under Substantial Expansion |
It is pertinent to mention here that the matter regarding the grant of Fiscal Incentives to Existing Industrial Units and Units under substantial Expansion under NCSS Scheme 2021 has been taken up with DPIIT but the same has been denied with the Remarks that the matter shall be taken with the State Govt. for the grant of Fiscal Incentives under the State Package.
It is worthwhile to mention here that the Reimbursement of SGST and Turnover Incentives vide Govt. Order No- 127-IND-2021 dated 21-05-2021 under State Package to Existing working units as on 31-03-2021 only without any benefit to the units who Opt for substantial expansion in respect of Additional line of manufacturing or change in the line of Activity resulting in numbers of Existing Units on the verge of closure.
We request Sh. Manoj Sinha Hon’ble Lt. Governor and Sh. Vikramjit Singh, (IPS) Commissioner Industries & Commerce Department for their kind intervention in the matter for the grant of Reimbursement of CGST/IGST to Existing Units and SGST/CGST/IGST along with turnover Incentive to Units under Substantial Expansion under the State Package of Incentive for their survival.