Arun Manhas assured BBIA members

While welcoming the Director, Industries and Commerce, Senior Vice President Tarun Singla drew the attention of Arun Manhas to the plight of existing work units, which are on the verge of closure due to the reduction in fiscal incentives from Rs 18,000 crore per annum before the implementation of the Goods and Services Tax (GST) regime to barely Rs 5,000 crore per annum, which has led to great dissatisfaction among work units in Jammu and Kashmir. There is a need to provide fiscal incentives of Rs 30,000 crore per annum to existing industries in the form of turnover incentives/GSTLI etc., comparable to the NCSS-2021 scheme notified by the Ministry of Commerce and Industry for new units.

BBIA Chairman Lalit Mahajan in his Chairman’s Speech drew the attention of the Governors to the imperative to save the existing units by providing financial incentives in the form of turnover bonus rebate on actual sales, SGST/CGST/IGST rebate to existing units and units undergoing substantial expansion in the next 10 years due to change/diversification of business scope, market support in the form of purchase/price concessions, etc. to prevent closure of existing units which currently provide direct and indirect employment to 30-40 lakh locals.

Other outstanding issues pertaining to the industrial sector include pending cases under IDS 2017 relating to repayment of 3% interest/insurance/GST/income tax, time bar cases on interest subvention, re-verification of 3% interest subvention cases, DG set subsidy cases awaiting payment, policy for procurement of goods from local units by medium and large enterprises, allotment of funds required for repair/maintenance of SIDCO complexes, allotment of land at alternative locations at Bari Brahmana and Samba to units that have applied for Meen Charka land, repayment of Mandi cess to flour mills, timely settlement of cases in felicitation committees under the Deferred Payment Act, verification of GSTLI cases by central CGST officials, and other related issues which will be elaborated on soon.

During the interaction, Dr. Arun Manhas assured the members that the issues highlighted during the interaction would be taken up by the administration on priority.