The Consortium of Young Industrialists Kashmir (CYI-K) today alleged the government was trying to impose GST in JK without consulting the stakeholders.
At a meeting here today the members of the consortium alleged that no impact analysis has been done by the government in term of "independent line of activity and trading commodities" for the introduction of this tax regime, "as was done during transition to VAT in 2005."
The consortium claimed to have done impact analysis for a couple of "line of activity" and said "it will be disastrous to common agenda of industries if GST is implemented in its present form in JK."
"The immunity given to local industries like SRO 91, VAT remission, excise and toll tax exemptions will be taken away under GST regime," the consortium in a statement said.
"The local industrial units will be exposed to larger competition for which they are not ready," they said.
The consortium demanded that the GST draft must be made public for open debate.
"If GST is implemented in its present form, the industrial units will lose remission and exemption and will land in trouble," it said.
Consortium president Mir Saqib said the industrialists have been put in a quandary. "As per a report by Institute of Chartered Accountant of India, if GST is not implemented in JK, we will come under double taxation system, and the industrialist won't get input tax credit. That would make our products costlier by 10-12 per cent as per study report.
"Therefore, the government should remove this confusion and come clean on the exemption and remission being given to the industrialist under the present regime."