The J&K government promised to reimburse the full amount of CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) to the traders from J&K but now the traders are left with the end of reimbursement.
As per the reports, the reason for the delay is the fear of deputed officer to come to the state for security reasons.
However, earlier the case was different, as the GST made some inconvenience to the traders of the J&K state and due to which the govt had to make the promise to return the GST paid by them.
The promise made by the government of reimbursing the money back was fulfilled within the week after paying the tax.
No reimbursement has been taken place from past three quarters which leaves the traders either from short of capital money or overburdened while paying interest on the loans which they have obtained from J&K Bank.
“After GST’s roll-out, the excise duty was replaced by GST, which has two equal components of CGST and SGST. The industries in J&K were granted subsidy under budgetary support through DIPP (Department of industrial policy promotion) against GST paid. The central government was to reimburse 58% and 42% was to be reimbursed by the state,” says President, Federation Chamber of Industries Kashmir, Muhammad Ashraf Mir who plead the Principal Secretary Finance Department, J&K Govt to refund the GST that the traders have submitted.
In an application to the Principal Secretary, Mir writes “Central government released funds provisionally for 6 months and further reimbursement was subject to inspection to be conducted by DIPP. We have been continuously following for inspection with Mr. Sandeep Chowhan (concerned officer) so that our pending GST would be reimbursed, but till date, no inspection has been conducted in Kashmir valley despite the fact that units in Jammu have been inspected.”
Read Also: Benefits of Newly Launched Gen GST Software Version 2.0
He also adds that the new scheme has been launched by the J&K government for the traders in the subject to government’s decision to reimburse their money. As the money is not being refunded on time, the traders who have taken a loan from the bank are not paying interest on it.
Mir said “in order for our capital to not suffer, the bank launched a scheme. So, we would get a loan from the bank against the amount we would pay to the government as GST. Since they are not reimbursing, we are paying interest to the bank also,” also adding, “Crores of rupees have been paid to the government. Those who have not taken the loan from the bank, their capital is emptying out.”
The Principal Secretary, J&K was busy in a meeting when the news portal tried to reach him. As per Mir, he promised to release the money as soon as possible.
