SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has advocated for the easing of input credit norms for Micro, Small, and Medium Enterprises (MSMEs) in Jammu and Kashmir. The demand was made during an interactive session with key officials from the State Taxes Department, including Commissioner PK Bhat, Additional Commissioners Ali Afsar Khan and Shakeel Maqbool, as well as Deputy Commissioners.
The FCIK delegation, led by former president and Advisory Committee Member Zahoor Ahmad Bhat, highlighted the challenges faced by MSMEs due to the denial of input tax credit until their suppliers deposit the tax with the government. Bhat argued that the current system puts undue burden on MSMEs, emphasising that if the Goods and Services Tax (GST) law is stringent on defaulters, the Tax department should consider granting input tax benefits upon the production of valid invoices from suppliers.
Besides, the FCIK pressed for the evolution of a mechanism to enable MSMEs to claim input credit for tax included in the prices of goods purchased from unregistered vendors. The organisation underscored the need for simplifying GST laws and rules, aligning them with the spirit of ease of doing business, especially considering that many micro and small units lack high-end facilities.
Several issues related to return filing, e-way billing, taxation on advances, and notices from the department were extensively discussed during the meeting. FCIK urged for a streamlined mechanism for the disbursement of State Goods and Services Tax (SGST) in favour of eligible MSMEs in Jammu and Kashmir, proposing an alternative, preferably cashless, method for SGST reimbursement.
One of the significant requests put forth by FCIK was the grant of amnesty for any lapses or defaults under the GST regime since its inception. Ovees Jami, part of the FCIK delegation, expressed gratitude for the amnesty granted under the Pre-GST regimes and called for an extension of the scheme until March 2024. Jami sought clarification on eligibility criteria and other issues hindering settlements by assessing authorities, highlighting that manufacturing enterprises had minimal tax liability under the remission mechanism.
The Commissioner of the State Taxes Department assured the FCIK delegation of full support and cooperation from his department to simplify compliance procedures for MSMEs. He pledged to address the concerns raised by FCIK with the relevant authorities, indicating a commitment to seeking redressal for the challenges faced by MSMEs in the region. The ongoing dialogue between FCIK and government officials reflects a collaborative effort to foster a more conducive business environment for MSMEs in Jammu and Kashmir.
