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After one full week, J&K finally joins the GST wagon

The Bill makes the provision for levy and collection of tax on intra-state supply of goods or services, or both by the State of Jammu and Kashmir

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One nation one tax becomes a reality after both houses of the legislature passed the Jammu and Kashmir Goods and Services Tax (JKGST) Bill amid boycott by Opposition parties.

With all decks being cleared, the GST will be finally rolled out in J&K from Friday making it the last state to extend the new tax regime to the restive state.

JKGST Bill 2017 Bill was moved by the state finance minister Dr Haseeb Drabu in both the Houses in separate sessions, and it was passed on Friday. The Bill makes the provision for levy and collection of tax on intra-state supply of goods or services, or both by the State of Jammu and Kashmir.

"The Bill has received the assent of the President of India. All necessary safeguards like Section 5 of the J&K State Constitution and those enshrined in Article 370 of the Indian Constitution have been incorporated in the Presidential order. Some members in the legislature expressed apprehensions during the discussion on this important legislation," Drabu said.

The finance minister said although there is no tradition of tabling a Presidential Order in the House, they are starting a new tradition in the state by tabling it in the House.

"Proviso-3 of the Presidential order clearly states that: Notwithstanding anything contained in clause 4 to clause 11 for the purpose of any decision impinging on constitutional provisions relating to the state of Jammu and Kashmir, the concurrence of the representative of the state of Jammu and Kashmir in the goods and services tax (GST) council shall be mandatory and the procedure provided under Article 370 shall be followed," he said

Drabu said the legislature of the state of Jammu and Kashmir shall have exclusive powers to make laws regarding imposition of any taxes enabled by Section 5 of the Constitution of Jammu and Kashmir.

"The Opposition had made a huge issue out of a non-issue by claiming that the fiscal autonomy of J&K will be compromised and the special status of the state under Indian Constitution will be eroded. The Presidential order has respected the sanctity of the J&K Legislature by safeguarding our Constitutional, Economic and Administrative powers," he said.

Drabu noted there will be no entry tax on goods, but the issue of Toll Tax is a subject matter of the State Government and will be decided by the State Cabinet in the due course of time. He added that the financial and administrative safeguards as promised by the Government in the GST regime would come in due course of time.

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