Jammu, December 02: If sources are to be believed, the Finance Minister of the state has hinted non implementation of goods and services tax (GST) in the state.
The debate on the subject is on rage across the country but as far as our state is concerned, the government is yet to finalize how to deal with the pan-India single tax system. The sources said that J&K might not implement GST due to special taxation powers of the state owing to its special status.
They further explained that the decision has led to resentment within the government since the decision is being taken by PDP leadership owing to its special status while the other coalition partner BJP was sidelined over the issue.
“The state government is yet to figure out its decide its official position on the GST but the two parties have never discussed the issue,” said a senior official from the Finance Department
“The state’s special status means that no Central law can be implemented directly in J&K but when the uniform tax regime is introduced, it will change the way goods and services flow across the country. We have not prepared any framework and it will lead to confusion in future, hitting the economy hard. J&K cannot remain sidelined for long in today’s market-driven economy when fiscal integration is the only way to improve life of people”, the official said.
The sources explained that the Jammu and Kashmir has power to tax both goods and services because of its separate Sales Tax Act. While all the other states in India have the authority to tax only goods. Jammu and Kashmir, if required, can surrender the authority to tax goods and services granted to it.
As per Pawan Gupta, Minister of State for Finance when asked about state’s stand on GST, he replied, “It will be better if you talk to Mr Drabu. He will be in a better position to give information on the issue. But the alliance partners should discuss the GST as it will have a positive impact on business and economy of the state. So far, we have not held any meeting.”