CGST-IGST Reimbursement Rs 170 crore of Jammu industrialists still pending with Union government

JAMMU: Industrial units in Jammu division are facing financial crunch as the GST payments worth hundreds of crores for the past several months stand blocked with the union government, even after almost the same amount on the account of State share was released in two installments, a fortnight ago.
“Union Government has failed to reimburse our IGST and CGST claims for the year 2019, adding up to nearly Rs 170 crores. All of these are sanctioned claims with an outstanding since March 2019. This is affecting our working capital and thus the production,” alleges Lalit Mahajan, President, Bari Brahmana Industries Association (BBIA).
Pertinently, industrialists make a monthly payment of SGST, CGST and IGST, of which they get 100% reimbursement in case of SGST and CGST, while IGST refund is at 29%. For CGST and IGST, they have to file claims quarterly to the Goods and Services Tax (GST) Department which then releases funds to the Department of Industrial Policy and Promotion (DIPP) for reimbursing claims.
SGST come under the ambit of state’s finance department.
“Ideally, industrialists should be refunded within twenty-one days of their claim submission, and the same was also notified by the government. However, it is unfortunate that refunds are never made timely. At times, it takes 6 months, or even an year for the concerned department to clear liabilities,” says Lalit.
He comments, “It might be surprising for many though a relief for us, that state administration has released funds for valid SGST claims till June 2019, while Rs 165 Crores have been released for the next quarter, which will be hopefully paid by December.”
As per sources, Rs 100 Crore under the 100% SGST reimbursement was released by government on Thursday, while Rs 62 Crore around a fortnight ago, along with the 2% reimbursement of transportation charges.
It is relevant to mention here that State GST will continue in the Union Territory of J&K, Ladakh, until and unless withdrawn or replaced by UT GST Act.
In addition to the GST claims, the government has pendency under the Capital Investment Subsidy (CIS) of Investment Development Scheme (IDS).
“Industrialists had applied for benefits under this scheme a year ago. Neither we nor the government has the figure for the total amount pending under this scheme, as the claims have not been registered till date. What is the benefit of an incentive, when is not time bound?” he asks.
Further adding to their woes, is the cumbersome online procedure of filing claims amidst restrictions on internet since August 5, following the Union Government’s decision to scrap Article 370 and reorganize the erstwhile state into two Union Territories.
“We have to personally visit the offices of the concerned authorities and file our claims. The websites are obsolete and internet restrictions have made the matter worse,” he says.