Police on Monday detained scores of industrial unit holders protesting against SRO 519 and SRO 521 issued by the government in order to incentivize a certain category of the industry under Central Goods and Services Tax ( CSGST).
Unit holders who gathered at Press Colony here said the “discriminatory SROs” were issued in a hurry to benefit “handful of outside investors” based in Jammu region.
The protest held under the banner of Federation Chambers of Industries Kashmir (FCIK) saw presence of unit holders from several industrial estates across Kashmir.
Addressing media, FCIK President, Mukhtair Yousuf said providing 42 percent CGST refund from the state government to “selected outside investors” based in Jammu region is a burden on the state exchequer. Only 317 units out of a total 60,000 units in the state have been notified for the 42 percent CGST refund from state government while 58 percent refund to them is given by central government.”
Yousuf said SRO 519 and 521 shows “indifferent attitude” of authorities towards the local industry which survives despite logistical and other constraints. “We are not averse to refund for any industrial units but somewhere a “deal has been struck” which made government pass the SROs in such a hurry while ignoring majority of local industry,” Yousuf said.
Industrialist Syed Shakeel Qalander said as a part of SRO 519, mostly outside investors based in Jammu, Kathua and Sambha have been notified for availing the CGST refund. Qalander said these outside companies have annual turnover worth thousands of crores which means the CGST refund to them also accounts for a huge amount.
“These two SROs are quite bizzare as they make state government to pay massive refund amount for these outside companies. Why did the government have to pass the SRO in such a hurry while putting this burden on state exchequer. There seems to be some outside pressure on government which is now going back and forth when asked about giving similar CGST refund for bulk of local industry,” Qalander said.
Several other unit holders also expressed concern about the “step-motherly” treatment which local industry has received from the state government by not extending the SRO 519 and 521 to local industry which provides employment to more than 3.5 lakh persons.
“The state government is making products of these outside companies more competitive by extending benefit of the refund to them. They will pass on the benefit of the refund to their end customer and as a result we will not be able to pitch against their product,” he said.
Later a statement issued by FCIK said members of industrial fraternity “suspect compulsions of the finance department” for issuing such discriminatory and irrational government order and has sought explanation for this action.
FCIK has demanded for an equal treatment to be meted out to all industrial units without any “bias or disparity which should include 100 percent refund of CGST and 100 percent refund of SGST”. FCIK has also demanded intervention of Chief Minister Mehbooba Mufti for “assessment and resolution of the grave issues confronting industrial existence,” the statement said.