SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has appealed to the new government to rectify discrepancies in the State Goods and Services Tax (SGST) reimbursement policy affecting manufacturing units that sell goods outside Jammu and Kashmir. In a formal communication to Deputy Chief Minister Surinder Kumar Choudhary, who oversees the Industries and Commerce Department, FCIK raised concerns about the exclusion of industrial units involved in interstate sales, which they argue creates inequities and undermines growth potential.
FCIK reminded the Deputy Chief Minister of the government’s 2018 initiative under SRO-63, intended to support manufacturing units following the withdrawal of VAT remission during the Value Added Tax regime. They noted that both intra-state and interstate manufacturers were adversely affected by this withdrawal, but the exclusion of interstate suppliers from SGST reimbursement further hinders local manufacturers aiming to expand their market reach.
“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,” FCIK stated. They emphasised that encouraging interstate suppliers is crucial for the overall economic development of Jammu and Kashmir, as it could enhance production capacities, create jobs, and improve the region’s status as a manufacturing hub.
To promote fairness, FCIK urged the government to reassess this scheme and establish a revised policy that treats all manufacturers equitably, regardless of their market scope. They expressed optimism that such changes would stimulate growth and enhance the region’s economic landscape. FCIK pointed out that several Indian states, such as Uttar Pradesh, have successfully implemented inclusive policies that incentivise manufacturers without market reach conditions.
In a related development, a delegation led by FCIK President Shahid Kamili met with Deputy Chief Minister Choudhary to congratulate him on his new role. Former FCIK President Meraj Qureshi accompanied Kamili and proposed an interactive session with FCIK members from across the Kashmir Valley. The Deputy Chief Minister welcomed the initiative, and plans are underway to schedule this session to encourage productive dialogue between government officials and industry stakeholders.
