Jammu and Kashmir Bank has launched a special financing scheme to help the state industry cope with the delay in reimbursement of GST under special tax relief.
The 'Add on Working Capital GST' scheme was launched by J&K Finance Minister Syed Altaf Bukhari in the presence of Minister for Industry and Commerce Chander Parkash Ganga and senior government and J&K Bank functionaries at a function here yesterday.
This scheme shall considerably strengthen the business enterprises that are facing stressed liquidity position due to Goods and Services Tax regime ," Bukhari said.
He further said such measures have the capability of creating a suitable environment for business stability and growth thereby benefiting the overall financial position of the state.
Ganga appreciated the bank's handholding approach towards the business community, especially the industrial sector, which was facing numerous challenges in the GST regime in addition to the geographical challenges of the state.
He said the bank should be proactive in providing credit facilities to the sector as entrepreneurship is the key to the development and financial prosperity of the state.
Chairman and CEO J&K Bank, Parvez Ahmed said: We understand that under GST regime, companies are facing liquidity crunch due to advance remittances and this short term loan product will perfectly plug in the wait period thereby reducing the stress of our business community to ensure healthy cash flow."
The scheme will be revolving credit facility at most competitive pricing of 9 per cent without the hassle of much documentation, he added.
The bank has also launched another scheme customised for the Trade and Services sector, which will get enhanced working capital for GST component under the scheme, he said.
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