Urges policy review to eliminate disparities, promote equitable support for manufacturers, enhance economic growth in J&K
SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has urged the new government to address disparities in the State Goods and Services Tax (SGST) reimbursement for manufacturing units selling goods outside Jammu and Kashmir. The organization seeks to align these incentives with those offered to businesses operating within the Union Territory.
In a communication to the Deputy Chief Minister overseeing the Industries and Commerce Department, FCIK expressed concerns about the exclusion of industrial units engaged in interstate sales of finished goods, according to a Chamber’s statement issued here. This exclusion, they argue, creates inequities and discriminates against manufacturers vital to the sector’s growth.
FCIK reminded the Deputy Chief Minister of the government’s 2018 initiative under SRO-63, aimed at providing budgetary support to manufacturing units following the withdrawal of VAT remission during the Value Added Tax regime. They emphasized that both intra-state and interstate manufacturers have suffered due to this withdrawal. However, the omission of interstate suppliers from SGST reimbursement hampers the growth potential of local manufacturers seeking to expand their markets.
“While manufacturers making intra-state or interstate sales have equally suffered due to the withdrawal of previous incentives, excluding interstate suppliers undermines competitiveness and limits expansion opportunities,” stated FCIK in their letter. They questioned the rationale behind this exclusion, arguing that supporting interstate suppliers is vital for the overall economic development of Jammu and Kashmir. Such support could enhance production capacities, create jobs, and elevate the region’s status as a manufacturing hub, while also improving J&K’s trade balance by reducing trade deficits.
To promote fairness and inclusivity, FCIK has urged the J&K government to revisit this scheme and develop a revised policy that treats all manufacturers equitably, regardless of their market reach. The federation expressed optimism that such a policy revision would stimulate growth and improve the overall economic landscape of the region.
Furthermore, FCIK noted that various states across India have implemented policies to incentivize manufacturers without regard to market reach. They cited Uttar Pradesh as a model, highlighting its inclusive approach that encourages both in-state and out-of-state sales without imposing conditions related to the registration date of units.
In a related development, a delegation led by FCIK President Shahid Kamili recently visited Deputy Chief Minister Surinder Kumar Choudhary to congratulate him on his new role. Former FCIK President Meraj Qureshi accompanied Kamili, proposing an interactive session with FCIK constituents from across the Kashmir Valley. The Deputy Chief Minister expressed enthusiasm for the initiative and readily accepted the invitation. Plans are underway to schedule this important session, aimed at fostering productive dialogue between government officials and industry stakeholders.