The BJP on Tuesday said that it will be a difficult scenario for the state if the goods and services tax (GST) is not implemented in the state by July 1 national deadline.
In what could be construed as exerting pressure on its coalition partner PDP to implement the GST in the state, BJP chief spokesman, Sunil Sethi, said, in an interview, that, “ it will be very difficult scenario for the state. I think the state government will be in a position to resolve all this. State should implement the GST by the national deadline otherwise it will be very difficult scenario.’’
He said that besides the Jammu and Kashmir, Kerala is the only state which has not taken decision over the GST implementation. Sethi said that the constitutional amendment 101 by virtue of which the GST will be implemented in the state can be extended to the state after the government gives its nod.
He said that there is no violation of the Article 370, as has been pointed out by some political parties and the extension of the constitutional amendment through a presidential order was only provided in the Article 370 of Indian constitution. Sethi said that the 101 amendment can be extended through a cabinet order as well.
About the suggestion by some political parties that the state should devise its own framework and set up own GST council to decide the tax rates of goods and services, Sethi said that such a scenario was not possible. He said that the regulation of the rates of the integrated goods and services tax (IGST) was to be decided by the national GST council which has been formed vide 101 constitutional amendment.
Government has recently announced the setting of an all party committee (APC) headed by senior PDP leader and former Deputy Chief Minister, Muzafar Hussain Baigh, but no orders have been issued over it. Sethi’s name has been announced as one of the members of the committee.
BJP is however, exerting pressure on the state to implement the GST at the earliest as it has chalked out elaborate arrangements in the Central hall of parliament by the end of this month to usher in a new tax regime.
Union Finance Minister, Arun Jaitely, has held that it is a historic tax reform which would not only bring down the tax rates of commodities and service by giving people the option of exercising the benefit of input tax credit, but will also ensure that the tax leakages are plugged.