SRINAGAR: Jammu and Kashmir, which was the only state not to implement Goods and Services Tax (GST) on July 1, will roll out the new tax regime from tonight after both houses of legislature passed State GST bill amid protests and boycott from opposition members.
The JKGST bill 2017, which was moved by Finance Minister Haseeb Drabu in both houses of state legislature during separate sessions, was today passed with voice vote in both the houses.
The opposition National Conference members boycotted the Assembly session today while Congress and Valley-based legislators protested against extension of GST to the State. The opposition members staged walk-out from the Assembly before GST bill was moved for consideration and passing.
After the passage of GST bill with voice vote, Drabu said new tax regime will roll out in the state at midnight, making J&K the last state to join the GST.
Due to resentment from opposition parties and Valley-based traders, the new tax regime could not be rolled out in the State on July 1 as was the case with rest of the country.
The JKGST bill 2017 was moved after a Presidential Order, which gave an assurance on preservation of the special status of the state guaranteed by Article 370 of the Constitution on implementation of GST in J&K.
The bill makes the provision for levy and collection of tax on intra-State supply of goods or services or both by the State and the matters connected therewith or incidental thereto.
Before moving the bill for consideration and passing by the state legislature, Drabu read out the contents of the Presidential Order pertaining to the special status of the state and its exclusive taxation powers.
“Although there is no tradition of tabling a Presidential Order in the House, we are starting a new tradition in the democracy of the state by tabling this Presidential Order in the House," he said.
Drabu said the Proviso-3 of the Presidential Order clearly states that notwithstanding anything contained in this order, the powers of J&K as per Section-5 of the Constitution of State, shall remain intact.” He said Presidential order has made it clear that J&K Legislature shall have the powers to make laws with respect to GST levied by the state.
The legislature of the state shall have exclusive powers to make laws in respect of imposition of any taxes enabled by Section 5 of the Constitution of J&K, he said.
Nothing in this article shall affect in any manner whatsoever the legislative competence of State as guaranteed by virtue of section 5 of the Constitution of Jammu and Kashmir, reads the Presidential order.
Drabu said all necessary safeguards to 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 regarding which apprehensions were expressed by some legislators during the discussion on the GST legislation.
“The opposition had made a huge issue by claiming that J&K’s fiscal autonomy will be compromised and the special status 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.
The opposition parties National Conference and Congress and Kashmir-based independent legislators and traders had opposed extension of GST to the State saying it will infringe on state’s financial autonomy guaranteed under Article 370.
The PDP-BJP coalition government had to convene special session of J&K legislature from July 4 to discuss implementation of GST in the State after there was no consensus among the political parties on extending the new tax regime to the State. The Valley-based traders also opposed implementation of GST in the State in the present form.
After the passage of JKGST Bill in Assembly today, Speaker Kavinder Gupta adjourned the house sine die.