‘Industrial sector discriminated over release of Central incentives by DIPP’ - watsupptoday.com
‘Industrial sector discriminated over release of Central incentives by DIPP’
Posted 29 May 2018 05:20 PM

Agencies
The Industrial sector of J&K is suffering very badly due to non-release of requisite funds by the DIPP to GST Commissioner, J&K in respect of refund of IGST/ 58% CGST as well as to JKDFC due to discrimination attitude adopted by the DIPP whereas the requisite funds already stands released before 31-03-2018 by DIPP for the Industrial Units located in Himachal Pradesh due to the reason best known to the concerned officials.
According to press release, it is pertinent to mention here that even though three quarters have passed since the roll out of GST from 8th July 2017, not even a single penny has been disbursed as Budgetary Support for the Units in the J&K State by DIPP.
As per the meeting held with the Additional Commissioner, GST J&K, It has been conveyed to us that the sanction orders have already been passed for the claims received so far but due to non allocation of funds for the Budgetary Support by DIPP the payments cannot be released to the Unit Holders.
It is the matter of great concern that an amount of Rs. 57 Crore was allocated to J&K GST Commissionerate for last financial year, at the last moment in the month of March 2018 which got lapsed due to cumbersome procedures adopted by the DIPP, Govt. of India. Further, for the FY 2018-19, J&K Industrial Sector needs around Rs. 500 to 600 Crore against the Central Package of Incentive budget allocation for which not a single rupee has been sanctioned by the DIPP resulting uncertainty in the mind of Industrial Sector of J&K.
It is worthwhile to mention here that since July 2017, the industry in Jammu & Kashmir has been paying the liability of GST without getting any refund/ budgetary support resulting a severe constraint on the liquidity & the working capital of the Units resulting the survival of majority of units is at stake.
Further, In respect of inspection of the unit by the DIPP as per the notification, to check their eligibility for the scheme, not even a single inspection was done by the DIPP even after the passing of six months, whereas as per the scheme, Budgetary support will be given only for first two quarters until the inspection by DIPP is completed.
All is not well in respect of pending sanctioned Claims of Capital Investment Subsidy, Interest and Insurance Subsidy for the release of funds for pending amount of Rs.122 Crores for the period of 2016-18, is at the mercy of the DIPP and we do not know when the funds release resulting huge financial burden on the Industrial Units.
Federation of Industries, Jammu appealed to Chief Minister Mehooba Mufti, Dy. Chief Minister who is also our Industries & Commerce Minister Kavinder Gupta and Finance Minister Syed Mohd Altaf Bukhari to take up the matter with Suresh Prabhu, Union Minister of Commerce & Industry, Govt. of India for the immediate release of requisite funds against the sanctioned cases as approved by the J&K GST Commissionerate and JKDFC which will provide a great relief to the Industrial Sector of J&K.

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