‘Increase J&K package from Rs 28400 cr to Rs 75000 cr’
* Dr. Jitendra supports Jammu Chamber team
Excelsior Correspondent
JAMMU, Dec 20: A delegation from the Jammu Chamber of Commerce & Industry, led by president Arun Gupta, along with senior vice president Anil Gupta and secretary Rajesh Gupta, met with Union Finance Minister Nirmala Sitharaman and Piyush Goyal, Minister of Commerce & Industry, in the presence of Dr. Jitendra Singh, MoS in the Prime Minister’s Office.
Arun Gupta outlined the challenges faced by the business community due to the amendment in the Income Tax Act u/s 43B(h), which mandates payment of purchase bills within 15-45 days. Failure to adhere to these timelines results in buyers incurring interest rates three times the bank rate set by the RBI, compounded monthly. He noted that previously, there were no written agreements and payments were made at the mutual convenience of the parties involved.
This amendment does not apply to medium or large enterprises, prompting traders to prefer dealings with them, which adversely affects Micro & Small enterprises.
The JCCI leader also highlighted that, during both the Sales Tax and VAT regimes, small businesses like Dhabas, Halwaies, tea stalls, and bakeries were liable to a flat sales tax of Rs. 3000 per annum during the Sales Tax regime and Rs. 12000 during VAT. However, post-GST implementation, these traders are now subjected to a 5% GST on total sales without any input credit. These businesses are monitored by the Directorate of Food Civil Supplies and Consumer Affairs. He urged a reconsideration of this issue, requesting a GST rate of 1% of their sales or the return to a lump sum fee, as was previously instituted before GST.
Additionally, the discussion included industry incentives and land allotment matters. Arun Gupta pointed out that the incentive package announced by the Prime Minister primarily benefits local youth and startups, yet local youth are not adequately represented in this industrial package despite significant investment growth.
He requested the Minister to augment the announced package from Rs. 28400 crore to Rs. 75000 crore and ensure that the Industries and Commerce Department in J&K allocates at least 20% of industrial land and incentives to local entrepreneurs.
Union Finance Minister Nirmala Sitharaman assured that the issues raised during the meeting would receive prioritized attention, and she committed to addressing the payment issues with the MSME department. Piyush Goyal also expressed assurance that locals would be prioritized in the new Industrial Package.
Leave a Reply