15 Jul 2017Posted By: Pulkit Gupta


GST in Jammu & Kashmir | Implementation - Latest News | Registration and Rate

Goods and services tax or the GST is a hot topic in the tax market nowadays. It is an indirect tax on the regime 'One Nation, one Tax’. Introduced as the constitutional( one hundred and first amendment)  the bill is well accepted by every state of India. Under the tax, Goods & services have tax rates of 0%, 5%, 12% and 18%.

 

Goods and services tax was implemented in the whole of India on July 1 except Jammu Kashmir who missed the GST rollout due to constitutional obligations. Jammu Kashmir has now joined the indirect tax on Saturday 08th July. Further people of J&K can also enjoy GST Composition Scheme

 

President gave Assurance

The President of India, Pranab Mukherjee gave assurance to preserve the special status of Jammu and Kashmir under Article 370 of the Constitution of India, afterward, the bill was moved to the assembly. To safeguard the taxing rights of Jammu and Kashmir under Article 370, the President order reads “The power of the State of Jammu & Kashmir as per section 5 of the Constitution of Jammu & Kashmir shall remain intact”. President Mukherjee promulgated two ordinances Central goods and services tax(CGST) and integrated goods and services tax (IGST) to bring Jammu and Kashmir 'One Nation, one Tax’ regime.

 

The First Step

On July 6 the first step in order to adopt new Indirect tax regime was taken with the President Mukherjee’s assent to the Constitution(Application to Jammu & Kashmir) Amendment order.

 

Following this process, on July 7, Jammu and Kashmir State Assembly paved the way to pass the goods and services tax bill by the state legislature. The chief minister of the state Mehbooba Mufti said: “Jammu & Kashmir can not get bigger Azadi, restoring the lost Sanctity of our assembly” she further said pointing out the new indirect tax regime that anything which is good for the country cannot be bad for the Jammu & Kashmir.

 

Opposition Steps out

The government of Jammu and Kashmir failed to convince the opposition once again. The parties in the opposition in Jammu and Kashmir State Assembly, including National Conference (NC) and Congress, reiterated the previous agenda that PDP-BJP (Jammu & Kashmir people's democratic party-Bharatiya Janata Party-led government) failed to clarify how would the state's fiscal autonomy be protected after the implementation of goods and services tax. In final words, the opposition said: “The amendment in the present form was not acceptable”.

 

Haseen Drabu's words

Finance minister of Jammu and Kashmir and former Chairman and CEO of Jammu & Kashmir Bank, Haseeb Drabu said that the state of Jammu and Kashmir has adopted a modified version of the legislation which does not encroach the special status of Jammu and Kashmir granted under Article 370. He said that the legislation does not compromise the special taxation rights of Jammu & Kashmir as well. He said, according to figures and estimates, the state will be of benefit to this regime.

The Goods & Services Tax has been adopted in the state of Jammu & Kashmir. The Chief Minister Mehbooba Mufti thanked President Pranab Mukherjee Prime Minister Narendra Modi and Union finance minister Arun Jaitley by saying “This act of the center will be written in golden words in Kashmir's history”.

In case you need assistance with GST Registration you can fill out our inquiry form and arrange a call from E-Startupindia business advisors or you can connect with us at 8881069069 

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