J&K Industrial Sector experiencing financial difficulties
Excelsior Correspondent
JAMMU, Jan 30: The Bari Brahmana Industries Association (BBIA) in Jammu has reported that the Industrial Sector in J&K is grappling with a serious financial crisis due to the non-payment of pending GST reimbursement liabilities exceeding ₹50 crores.
An urgent meeting of the BBIA convened today, led by President Lalit Mahajan, with the participation of senior vice president Tarun Singla, vice president Ajay Langer, general secretary Viraaj Malhotra, secretary Rajesh Jain, treasurer Rishi Kant Gupta, and other members to address the issue regarding the blockage of working capital for industrial units as the Finance Department has failed to release ₹50 crores to the State Tax Department to settle the pending GST reimbursement claims of operational industrial units.
Mahajan emphasized the matter to Lt Governor Manoj Sinha, Chief Minister Omar Abdullah, and Principal Secretary Finance Department Santosh Dattatreya Vaidya, regarding the reimbursement claims of CGST/SGST approximating ₹50 crores, which have been duly sanctioned for the period ending 30-09-2024 according to the Budget allocated for the Financial Year 2024-25. However, the Finance Department’s lack of urgency in resolving the outstanding claims has led to significant distress among unit holders due to the blockage of working capital.
It is important to note that according to SRO guidelines, payment for CGST/SGST reimbursement claims should be disbursed within 21 days of claim submission. Nevertheless, the approved claims totaling ₹50 crores submitted for the period up to 30-09-2024 are still awaiting the sanctioning of budgetary allocations and fund allotments to additional treasuries by the Finance Department, which has severely impacted the operational units, making it difficult for them to pay salaries, wages, and other obligations punctually.
The BBIA has appealed to the Lt Governor, Chief Minister, and Principal Secretary Finance Department for urgent intervention to ensure the timely release of the necessary funds to the State Tax Department/Additional Treasuries for the reimbursement of GST claims, which would greatly alleviate the burden on the industrial units.
