State government has admitted that Union Finance Minister, Arun Jaitley, had asked Jammu and Kashmir government to approve the GST legislation at the earliest to clear the decks for implementation of one tax structure across the country.
Contrary to what Jiately said in a press conference after the GST council meeting at Srinagar that the state was competent to take the decision over the extension of the act, Union Finance Minister has told the state government to be part of the one tax structure.
These revelations form part of the Economic Survey report 2016, which has noted that constitutional amendment act for Goods & Service Tax India (GST) In India, the constitutional (one hundred an first amendment) Act of 2016 “opened the window for a national goods and service tax act in India.’’
“ GST is value added tax. It is comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by central and state governments. The GST is intended to subsume central excise duty, additional excise duty, service tax and additional duty of customs (equivalent to entry tax), state VAT, entertainment tax, taxes on lotteries, betting and gambling and entry tax ( not levied by local bodies). Other taxes like Octroi, entry tax & luxury tax after subsuming in GST will make it a single indirect tax in India. The bill was passed by the Rajya Sabha on 3rd of August, 2016 and the amendment bill was passed by Lok Sabha on 8th August, 2016. The assent from the President was received on 8th September, 2016 and stood notified in Government gazette,’’ notes the Economic Survey report.
The Survey report further added that the state government has decided to implement Goods and Services Tax (GST) in the state and set up a High Level Committee to be headed by the Financial Commissioner, Planning, Development and Monitoring Department for drafting the legislation, which would be tabled before the Government, and after clearance, in the Legislature.
Although the state cabinet recently approved the draft legislation on GST, it couldn’t be tabled in the special assembly session which was called over GST as Opposition pressed for deferring the session. The special assembly session was deferred only after the members made their remarks during the obituary references.
The government has further noted that the state Government has deliberated upon the issue and came to the conclusion that it should implement the GST but with the riders so that it’s constitutional position and special taxation powers are not affected.