Excelsior Correspondent
JAMMU, Oct 29: Bari Brahmana Industries Association (BBIA) has claimed that food production and packaging material manufacturing units are facing closure due to reduction GST rates, under GST reforms 2.0.
A meeting of the BBIA was held under the Chairmanship of Lalit Mahajan, its president and Co-Chairman Federation of Industries Jammu in the presence of Members of MSME Units engaged in the manufacturing of food products and corrugated boxes to discuss the issue of reduction in the GST rates from Sept 22, 2025 on the finished goods resulting negative impact on the growth of existing working units of J&K.
During meeting the members raised serious concern towards the plight of majority of working food products and corrugated boxes manufacturing units suffering very badly due to the reduction of GST on the finished goods to 5% resulting their refund of GST under the J&K State Industrial Policy 2021-30 reduced to zero, resulting they are not able to compete with the new units set up for the same products after Apil Ist, 2021 under the NCSS-2021 Package of Incentives notified by Govt of India.
Mahajan drew the kind attention of Manoj Sinha, Lt Governor, Omar Abdullah, Chief Minister and Surinder Kumar Chowdhary, Dy Chief Minister of Union Territory of J&K that the GST on the manufacturing of food products and corrugated has been reduced to 5% from 12% and 18% w.e.f 22-09-2025 resulting the GST reimbursement reduced to ZERO under the state package/Central Package prior to 01-04-2021 whereas the new units set up after 01-04-2021 getting the Gross GST Reimbursement of 5% resulting it is not possible for the existing working units to compete with the new Units which may be resulting in closure of their units in future.
At present nearly 150 units working in Jammu and Kashmir (75 units in Jammu Division) facing the impact of GST 2.0 Reforms with the total nNumber of employment in such units is around 6000 local peoples and if units closed due to non- availability of GST reimbursement benefits the future of 6000 persons and their families will be at stake as the unit holders may opt for the closure of their units.
BBIA sought intervention of Manoj Sinha, Lt Governor, Omar Abdullah, Chief Minister and Surinder Kumar Chowdhary, Dy Chief Minister of Union Territory of J&K.
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