News Worms
News Worms

GST rollout will face initial hiccups: Arun Jaitley

GST rollout will face initial hiccups: Arun Jaitley

Making a U-turn, the Jammu and Kashmir Congress had said on Thursday that it was not against the implementation of the GST in the state, almost two weeks after terming it as "unacceptable".

Jaitley also expressed confidence that technology intensity in indirect tax and direct tax administration would go up in the coming years and this will bring big benefits to taxpayers.

The new five-Day session would be held despite the failure of the Consultative Group to arrive at a consensus to implement the SGT regime. The state government could also take a hit as it will be ineligible for compensation for any potential losses as the GST (Compensation to States) Act, 2017 specifically provides for any compensation to kick in from the transition date, which implies the date on which the SGST Act comes into force in the state concerned. The group said the GST would take away "our financial autonomy enjoyed in terms of Section 5 of the Constitution of Jammu & Kashmir".

"We will not allow GST in the present form to be implemented in the state".

Hailed as the "most ambitious economic reform" in India, the GST was launched during a midnight session of Parliament in the presence of President Pranab Mukherjee, Vice President Hamid Ansari, Prime Minister Narendra Modi and Lok Sabha Speaker Sumitra Mahajan and other dignitaries.

The ramification could be more pronounced as traders will not be able to avail input tax credit for supplies of taxable goods and services from other states to J&K.

Jaitley said GST is a collective decision of the nation and every state government has supported it.

However, when India Today talked to the Customs and Excise officials in Agra, they said that the GST was a very easy tax and it would not hamper the ease of doing business in the country.

The Federation is an amalgam of various trade bodies across Kashmir and has called for the Valley-wide protests and shutdown.

Jammu and Kashmir Finance Minister Dr Haseeb A Drabu said that the government will ensure adequate safeguards for protecting the special constitutional position of Jammu and Kashmir as enshrined in Article 370 of the Constitution. The Constitution amendment provides that petroleum products can be taxed under GST as and when GST Council decides. Drabu said GST is the superior version of Value-Added Tax and is beneficial for the consumers.

According to Drabu, non-implementation of GST in J&K will likely have fallouts.


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