GST roll-out hit industrial production, forced employee layoffs: FCIK

Appalled by ‘callous’ performance of government departments, the Federation Chamber of Industries Kashmir claimed that rollout of Goods and Services Tax (GST) regime has hit Kashmir industry badly resulting in huge employee layoffs and compounding employment crisis in the state.
“Industrial sector of Jammu and Kashmir is badly hit by the rollout of GST and the industrial production has almost come to a standstill resulting in the employee layoffs. The situation is very grim and is compounding the problem of unemployment of the state,” reads a communiqué addressed by FCIK to chief minister, finance minister, power and industries ministers in which industrialists have narrated their ‘woeful’ experiences faced in running day to day affairs.
President, FCIK, Muhammad Ashraf Mir in a letter has claimed that “We are sure new and prospective industrial units will not come up and need to be advised otherwise post implementation of GST which has made life tough for startups.”
“Purchase and price preference provided to the local industry as per the industrial policy in vogue is not adhered to by the government departments.
“Government has issued several orders safeguarding the MSME sector from time to time. These orders are flouted when schemes are put to tenders on turnkey basis. This way the outside contractors purchase material from outside the state ignoring the local industries,” communiqué reads.
Similarly after roll out of GST, he said, the tax remission in VAT and levy of entry tax was providing a cushion to the local manufacturer to offset the additional costs of production peculiar to the state.
“The rollout of GST has brought the MSME at par with the big corporations and MNCs who have huge human resources and fund corpuses at their disposal. The subsuming of excise in the GST has given these corporations an advantage over the MSME as there is no distinction in levying of GST.”
FCIK has strongly objected to this land transfer and proposed to utilise this land at Zainakot for Industrial purpose only and it would be in fitness of things to keep the para military and police establishments away from industrial and economic centers.
FCIK has also rued dearth of staff in DICs across Kashmir hindering work of unit holders.