AMN
Finance Minister Arun Jaitley has urged Jammu and Kashmir Chief Minister Mehbooba Mufti for introduction of the Goods and Services Tax,GST from 1st of July along with the rest of the States. Mr Jaitley has written a letter to Mehbooba Mufti in this regard.
All the States, except Jammu and Kashmir, have already cleared the State GST (SGST) Bill and are ready for embracing the new tax regime.
The Finance Minister said that if Jammu and Kashmir government is not able to introduce GST from 1st of next month then it may lead to increase in prices in all goods being purchased from other States.
Mr Jaitley pointed out that this is so because the goods and services tax is a destination based tax. He said, an Integrated goods and services tax (IGST) shall be levied on all supplies of goods and services made in course of inter State trade or commerce.
The Finance Minister also mentioned that if Jammu and Kashmir does not join GST then for all purchases made by the State from other States after 1st of July, the dealer shall not be able to take credit of this IGST.Similarly, in case of goods or services sold from Jammu and Kashmir to other states, the buyer will not be able to take credit of the local taxes paid.
He said, it will put the trade and industry in the State at a competitive disadvantage.In his letter, Mr Jaitley urged the Chief Minister to send the concurrence of the state on the GST Constitutional Amendment Act, 2016, for the approval of the President.
As per Article 370 of the Constitution, amendments made in Constitution of India are applicable to Jammu and Kashmir with the concurrence of the state government and approval of the President.
