Speed Post News Network
New Delhi : Union Finance Minister Arun Jaitley on June 26, 2017, dashed off a letter to the CM, J & K, Mehbooba Mufti Sayeed, requesting her to facilitate introduction of the Goods and Services Tax (GST) in that state from July 1, 2017, along with the rest of the states.
Jaitley observed that Jammu and Kashmir had actively participated in the GST Council meetings and had meaningfully contributed to framing of the various laws and rules for GST. He thanked the Chief Minister for having hosted the Fourteenth meeting of the GST Council in Srinagar on May 18-19, 2017, where some very crucial decisions relating to GST including decisions on majority of the tax rates were taken, according to a PIB release.
The Finance Minister, in his letter, has further mentioned that as per Article 370 of the Constitution, amendments made in Constitution of India are applicable to the state of Jammu and Kashmir with the concurrence of the Government of the State, as the President may by order specify. He urged the Chief Minister to send the concurrence of the state, with any modifications as considered necessary keeping in view the special constitutional position of the state on the Constitution (One Hundred and First Amendment) Act, 2016, for the order of the President, according to the PIB release
The Finance Minister also brought to the notice of the Chief Minister that in case the Jammu and Kashmir is not able to introduce GST from July 1, 2017, it may lead to following adverse impact :
a general increase in prices in the state of all goods being purchased from other states and
increase in the price of all goods being sold from the state of Jammu and Kashmir to other states which shall have an adverse impact on domestic industry in the state, according to the release. The Finance Minister has pointed out that the Goods and Services tax is a destination based tax.