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Association of Industries, Gangyal Raises Concerns Over J&K Govt.’s Negative Attitude Towards Existing Industry

President of AOI Highlights Challenges Faced by Micro/Small Industries in Meeting Reimbursement Claim Deadlines

17-05-2023: Association of Industries, Gangyal expresses its deepest concern about the negative attitude of the J&K Govt. Towards the existing industry. Govt. has issued an incentive of reimbursement of SGST on value addition. AOI wishes to draw the attention of the Govt. that AOI has many times requested the concerned authorities to amend clause 5.1 of SRO 63 dated: 05.02.2018 which says that the manufacturer shall file an application on prescribed format to be notified by Commissioner Commercial Taxes for reimbursement for the Tax paid in cash other than the amount of Tax paid by utilization of input Tax  Credit under Jammu & Kashmir Goods and Services Tax Rules 2017 to the Assistant Commissioner/Commercial Taxes Officer, as the case may be by the 15th. day of the succeeding month after the end of the quarter after payment of tax relating to the quarter to which the claim relates.

AOI Seeks Clarity on Determination of Reimbursement Amounts Under SRO 519, 521, and 63

Sh. Rajesh Jain, President of the Association of Industries, Gangyal appeals to the Govt. that this clause needs to be removed as it deprives the unit holders who fail to file the claim within the prescribed period for reasons beyond their control. It will not be out of context to mention that the Micro/Small industries of J&K UT are a one-man show. The entrepreneur himself performs every activity to run the unit. It sometimes becomes an impossible job for the entrepreneur to file the claim in time. AOI has requested the concerned authorities a number of times but nothing has been done in this matter. The denial of incentives for a small lapse is much cruel punishment. It is also pertinent to mention here that D.P.I.T.T, Govt. of India extended the date for filing the claims under NCSS but regret to say that UT Govt. is reluctant to do so. This amounts to the virtual denial of the incentive to the eligible units.

Sh. Rajesh Jain also wishes to draw the attention of the Govt. towards the clarification with respect to the determination of the amount of reimbursement under SRO 519, 521, and 63. The Finance Department has issued clarification vide its order No. FD-ST/29/2022-03 dated: 26.04.2022 in respect of Reimbursement of CGST/SGST on the basis of monthly deposit of amount without deducting the amount available in the credit ledger in the particular quarter.

In this regard, we submit that since September Quarter 2017, Crores of rupees from the Industrial Sector have been deducted by the State Tax Department for the amount reflected in the Credit Ledger at the end of each quarter resulting in huge financial losses to the unit holders.

AOI requests the Hon’ble Lt. Governor Sh. Manoj Sinha Ji, Chief Secretary Dr. Arun Mehta Ji to look into the matter and issue instructions to the concerned authorities to make necessary amendments in the SRO 63 to remove this anomaly of filing the claims by the 15th. of the succeeding month. AOI also request that the delay in filing reimbursement claims for the previous period may also be condoned and necessary arrangements be made in the portal to allow the entrepreneurs to file reimbursement claim for the previous period.

AOI also requests that the clarification issued by the Finance Department may kindly be implemented in true letter and spirit. AOI wishes to apprise the Govt. that all these incentives were announced by the Govt. to make the existing industries sustainable. The virtual denial of such incentives shall result in the closure of the existing industry which is already under stress. Sh. Rajesh Jain, President, AOI again appeals to the Hon’ble Lt. Governor to come to the rescue of the existing industry by instructing the concerned authorities to implement all the declared incentives in true letter and spirit for the sustenance of the existing industry.