A body of industrialists in Jammu Wednesday claimed a decline in industrial growth in the GST regime and demanded a fiscal incentive package at par with North-Eastern states to create employment opportunities for the local youth.
A body of industrialists in Jammu Wednesday claimed a decline in industrial growth in the GST regime and demanded a fiscal incentive package at par with North-Eastern states to create employment opportunities for the local youth. Industrial sector recorded limited growth in the last three years due to reduction in the fiscal incentives available to the working units as compared to the incentives in pre-GST regime, Chairman of Federation of Industries Jammu (FOIJ) Lalit Mahajan said.
He said the position is more serious for about 8,000 micro and small scale units as in GST regime limited incentives are given by the state government to such units which were not availing the central excise benefits prior to GST rollout due to exemption given to those with up to Rs 1.50 crore turnover.
“The majority of micro and small scales industrial units are working in spite of all the odds like militancy, limited market avenues, hostile neighbouring countries, location disadvantage, higher cost of raw material besides facing stiff competition from the units located in the neighbouring states,” he said.
Mahajan said these units are on the verge of closure and in the process of shifting to other parts of the country as it is not possible for them to operate due to additional cost of raw material and finished goods.
“Our repeated requests for the grant of fiscal incentives to micro and small scale sector for the reimbursement of 42 per cent CGST and 5 per cent budgetary support to compensate the shortfall of incentives prior to GST is pending with the state government since long and any further delay may lead to the closure of number of units,” he said.
Mahajan expressed concern over the “sharp decline” in industrial growth over the past three years due to non availability of post GST central and state fiscal incentives.
“The industrial estate developed with the investment of crores of rupees by the industries department is lying vacant due to non availability of investor in our state,” he said.