Jammu business community mounts pressure; Chamber writes to PM, FM

GST: NO ROADMAP YET FROM GOVT

JAMMU: With no clear indication from the government on its proposed roadmap for implementation of the Goods and Services Tax (regime), the business and industry community in Jammu has come out to mount pressure for Centre's intervention so that the trade could be saved from double taxation and technical disparities.
The constitution of an all party committee to discuss the contours of GST bill as indicated by the government on June 18, a day after the assembly session of adjourned hours after its meeting, has yet to take any formal shape. It is, however, reliably learnt that with the prevailing confusion and absence of any roadmap from the government side, the GST may eventually be extended to Jammu and Kashmir through Presidential orders but that still is not possible before the July 1 deadline. Meanwhile, in Jammu, the representatives of business and industry today expressed their serious concern over the prevailing confusion and asked the Centre and the state government to ensure that GST was implemented along with the nationwide deadline. Statements from the business and industry bodies also allayed confusions that they shared concern of their counterparts in Kashmir Valley.
Mounting pressure on the state government, the Jammu Chamber of Commerce and Industry has written to the Prime Minister Narendra Modi, Finance Minister Arun Jaitley and other central leaders for their immediate intervention in the issue. They also accused the state unit of BJP of the failure to have the GST implemented on time.
The representatives of the Chamber in a meeting chaired by their president Rakesh Gupta expressed serious concern regarding alleged non-serious attitude adopted by the government leaving the business community in utter chaos. In a communication sent to the Prime Minister and other central leaders they said "it is extremely unfortunate that the utter silence of BJP J&K unit on the implementation of GST by July 1, is proving disastrous for the business community on the whole in our state. We feel perplexed that being the coalition ruling partner in Jammu and Kashmir your state unit is silent and not coming out in open support for implementation of GST in line with the nation.
"We thought it proper to send out this communication to your goodselves because in the past also on many occasions the silence of the state unit of BJP left no choice for the Chamber of Commerce & Industry and rather forced us to go for Jammu bandh to press our genuine demands against our wishes. The Chamber requested the Prime Minister to urgently intervene in the issue and direct the state BJP unit to stand up to the occasion. The other office bearers present in the meeting include Rajesh Gupta, Senior Vice President, Rajeev Gupta, Junior Vice President, Manish Gupta, General Secretary, Gaurav Gupta, Secretary and Ashu Gupta, Treasurer.
Meanwhile, the Federation of Industries, Jammu, said that it strongly desired implementation of GST in J&K and it should happen along with rest of country on July 1.
Addressing a press conference here today, Rajesh Jain and Lalit Mahajan, the leaders of industry bodies said, the process of unifying all taxes and duties into one tax has been going on for the last ten years and now through discussions and nationwide consensus the GST is being rolled out from July 1. However our State is yet to adopt and pass the legislation. Apparently those wanting to oppose and delay GST perhaps have not understood the benefits of nationwide one tax regime benefiting traders, manufacturers, common man and the Govt. as well. "Apprehensions have been created implying that adoption of GST will erode the fiscal autonomy of the State. This is largely incorrect as the State legislature has powers to make laws with respect to Goods and Services Tax imposed by the Union or by the State.
"Those wanting to make this a political issue will be causing immense harm to trade and industry and eventually the state itself. If GST is not implemented along with the rest of the country there will exist a fiscal chaos as it will not be possible to import goods within the State as industry and trade will not be able to supply valid GST registration numbers. The Central Excise laws will cease to exist with effect from midnight of June 30 and industry will be unable to sell or purchase goods. It will have no option but to close down resulting in laying off and even retrenchment of lakhs of labour who are directly and indirectly employed. The implications of such action perhaps not fully being realized by those opposing or wanting to delay the implementation of GST.
The Federation said, in a recent meeting held with top government functionaries in the presence of Chief Minister, Deputy Chief Minister, Finance Minister and Industries & Commerce Minister it was assured that all fiscal incentives being availed, as on date, will continue in a suitable manner even after GST is implemented in J&K State. "However there is no clarity as to what shape these fiscal incentives will be extended nor there has been a substantial interaction with the stakeholders which is causing substantial uncertainty and confusion in the minds of Industry. The State Govt. needs to pursue with the Central Govt. regarding issue of suitable notifications towards continuation of the existing incentives extended by the central Govt. under the incoming GST regime".