Terming that inflation won’t be increased after national introduction of Goods and Services Tax from July 1, Finance Minister Arun Jaitley today said post September 17, the Centre will not be able to collect excise, service tax and States also can’t collect VAT.
The finance minister said that the state’s domestic industry will also suffer as prices of all goods being sold from J&K to other States will rise.
The Union Finance Minister listed out the disadvantages of the state not introducing GST from July 1, saying it may lead to adverse impact like a general increase in prices of all goods being purchased from other states.
The governor said this to a four-member Congress delegation which met him at the Raj Bhavan here and apprised him about their views regarding implementation of Goods and Services Tax (GST) in the state, an official spokesman said.
Jaitley said Jammu and Kashmir had actively participated in the GST Council meetings and had meaningfully contributed to framing of the various laws and rules for GST.
“This shall put the trade and industry in the state of J&K a competitive disadvantage”, he said. Rakesh Gupta, President of the Jammu Chamber of Commerce and Industry (JCCI), has set for the state government the deadline till Tuesday to announce the implementation of the new tax regime.
Some Industry leaders in Jammu commented, ‘The ruling PDP-BJP government seems to have created mess for it by stretching the issue too long to project its image as protector of special status of J&K which is always averse to anything Indian except India’s money.
GST is expected to bring about a uniform system of indirect taxation and will replace various taxes levied by the central and state governments as well as local authorities. Additionally, he mentioned that the dealers based in the state would not be able to avail the credit of IGST if the state remained outside the purview of GST.
Accordingly, he has urged Mufti to send the concurrence of the State, with any modifications considered necessary for its special status, on the Constitution (One Hundred and First Amendment) Act, 2016 for the order of the President.
In a letter to J&K chief minister Mehbooba Mufti, the minister suggested that Article 370 of the Constitution gave the state government power to give its concurrence without getting an explicit approval from the assembly.