The Bari Brahmana Industries Association (BBIA) has raised concerns that recent GST rate reductions on food products and corrugated packaging goods under GST Reforms 2.0 may lead to the closure of existing manufacturing units in Jammu & Kashmir (J&K).
At a meeting chaired by BBIA President, association members said the cut in GST on finished goods — to 5 percent from earlier slabs of 12 percent and 18 percent — effective September 22, 2025, has eliminated reimbursement benefits available to units established before April 1, 2021 under the J&K Industrial Policy 2021–30.
According to the BBIA, newer units set up after April 2021 under the NCSS-2021 incentive scheme continue to receive full 5 percent GST reimbursement, creating what they called an uneven playing field.
He said approximately 150 MSME units across Jammu and Kashmir, employing nearly 6,000 workers, are affected by the change and may struggle to remain viable without support.
He urged the J&K government officials — Lieutenant Governor Manoj Sinha, Chief Minister Omar Abdullah, and Deputy Chief Minister Surinder Kumar Chowdhary — to intervene.
The association has requested a special incentive package to extend 5 percent gross GST reimbursement for existing units in the food processing and corrugated box manufacturing sectors until March 2031.
The move, they said, is necessary to safeguard employment and ensure competitiveness for established enterprises in the region.
