Incentivize Existing Units for Better Survival, Advises FOIJ

The Federation of Industries Jammu (FOIJ) has called on the Union Government and UT Administration to provide gross GST incentives to existing industrial units looking to expand and restore purchase and price preference to local MSME units. The FOIJ has drawn attention to the employment opportunities created by small industrial estates established in the 1960s and the various fiscal incentives provided by State/Central Governments to new units and existing units under substantial expansion over the years. Since the abrogation of Article 370 in August 2019, Jammu & Kashmir State has been bifurcated, and the applicability of GFR of Govt of India has affected local MSME units, with purchases now routed through Gem Portal instead of local suppliers. Although the Govt of India has notified new Central Sector Scheme 2021 granting fiscal incentives to new units opting for substantial expansion, the incentives are not applicable to existing units. FOIJ Chairman Lalit Mahajan warned that the denial of Gross GST to existing units may threaten their survival, potentially resulting in mass-scale retrenchment of workers in the future. Mahajan has called for the restoration of purchase and price preference to local MSME units for the supply of goods to State Govt Departments and the provision of gross GST incentives to existing units looking to expand.