28-04-2023: Federation of Industries, Jammu humbly appeals to PM Narendra Modi, Sh. Amit Shah Hon’ble Union Home Minister and Sh. Manoj Sinha Hon’ble Lt. Governor, JKUT to save the Existing Micro & Small Scale Industrial Sector of JKUT from Clouser as the Existing MSME Sector and Service Sector totally ignored while granting the GST Link Fiscal Incentives as per Notification No. F/1(1)2020-SSS dated 19-02-2021 issued by DPIIT, Ministry of Industry & Commerce.
While highlighting the issue Sh. Lalit Mahajan, Chairman Federation of Industries Jammu raised serious concern about the uncertainty prevailing in the mind of Working MSME Units of J&K due to the denial of Reimbursement of Gross GST to Existing Units and Units under Substantial Expansion as per the said Notification due to which Unhealthy Competition may be faced from the New Investors in the State who will get the Benefits of Gross GST Reimbursement of 300% in the Investment of Plant & Machinery.
It is worthwhile to mention here that the majority of the MSME Units working in J & K UT with limited Marketing Avenues, Higher Production Cost and keeping in mind the above facts, the Central/State Govt. always provided Fiscal Incentives from Time to Time in all previous Notifications of Govt. of India/ State Govt. issued since 2002 in which all the Fiscal Incentives granted to Existing Units as well as to Units under Substantial Expension at par with the New Units.
It is pertinent to mention here that under the State Industrial Policy 2021, the SGST Reimbursement Incentives was given on value Addition only to Existing Units for the Reimbursement of SGST but the Existing Units under Substantial Expansion totally ignored the grant of GST Link Incentives by State/Central Govt. resulting great Resentment amongst the Existing Unit Holders who are providing Direct & Indirect Employment to 4 to 5 Lacs Local People of JK UT and we fear that the working Existing Industrial Units may opt for the Clouser of their Units in future due to non-availability of Central Govt. GST Link Incentive to Existing Units as well as units Under Substantial Expansion at par with the new Units under the Industrial Development Package 2021 which may be resulting in mass-scale retrenchment of local industrial workers & it is the need of the hour to provide GST Linked Fiscal Incentives to Existing Units & Units under Substantial Expansion at par with New Units as per the Industrial Development Package 2021 to save the Local Existing working Units from Clouser in near future.
We humbly appeal to Sh. Narendra Modi, Hon’ble Prime Minister, Sh. Amit Shah Hon’ble Union Home Minister and Sh. Manoj Sinha Hon’ble Lt. Governor, JKUT for their kind intervention for the modification in the said Notification with the grant of Gross GST Reimbursement to Existing working Units and Units under Substantial Expansion at par with the New Units as per the Central package of Incentive 2021