MSME on verge of closure due to missing detailed notification under GST

MSME on verge of closure due to missing detailed notification under GST

Jammu: A delay in issuing guidelines for extension of incentives under the Goods and Services Tax (GST) regime has put the Micro, Small and Medium Enterprises (MSME) sector in the state on the verge of a collapse, an association of industrialists said today.

“Uncertainty prevails in the MSME sector, which is totally dependent on sale of products within the state. This is due to the delay tactics adopted by the finance department in issuing guidelines for extension of the state package of incentives under the GST Regime,” Bari Brahmana Industries Association (BBIA) said in a statement after a meeting here.

BBIA general secretary Ajay Langer said a majority of the MSME sector of the state is not covered under the central package of incentives announced by the Department of Industrial Policy and Promotion (DIPP).
“Out of about 10,000 units working in the state, only about 500 units are eligible to avail the benefit of central package,” he said.

Langer said that it was of “great disappointment” that in spite of repeated assurances, the government failed to issue guidelines till date.

“The government had assured that the notification and guidelines will be issued within one week from the date of issue of notification by the central government. The Office Memorandum was issued on October 25 but the detailed notification is awaited even after the passage of a month, which shows the casual attitude of the finance department toward the industrial sector of the state,” he alleged.

Langer said that the delay has put a huge financial burden on the industrial units, resulting in a blockage in working capital.

Demanding early issuance of the guidelines, Langer sought the intervention of Chief Minister Mehbooba Mufti, Finance Minister Haseeb Drabu and Industries Minister Chander Parkash.