No compromise with special constitutional position, J&K Government on GST implementation

Srinagar, May 25: Clearing the apprehension that implementation of Goods and Services Tax (GST) would weaken the special status of Jammu and Kashmir, Government declared that a comprehensive debate would be held by lawmakers regarding imposition GST in the State.

The Government is committed to preserve the special position of the State and same will be taken care of when the GST is implemented all over India Minister for Public Works and Government Spokesperson Naeem Akhtar said in a statement. The Minister said that the Government will bring a special bill in the Assembly and there will be a comprehensive debate on it by lawmakers regarding imposition of the GST.

“Nothing will be allowed which will compromise the special constitutional position of the State”, he announced. Mr Akhtar said that in the case of Food Security Act or Panchayati Act, the State Legislature brought in its own act.

Similar approach will be adopted in case of the GST, he said adding that the Government will uphold all the principles of democracy while deciding on the issue of the imposition of GST in the State. However, the Minister said that with the imposition of GST, products will become cheaper as it will do away the archaic practice of double taxation because of its cascading effect. He said that for a consumer state like J&K, people will be benefited by its implementation and if there is any loss of revenue to the State, Union Government will reimburse the same. He said that GST has become a norm in entire world as it greatly benefits the economy. He said that the State cannot remain isolated from the new tax order but at the same time all the interests of the State will be safeguarded.

The Minister called upon the people not to give ears to unfounded arguments from certain quarters who have always been against the interests of the State and have done enormous damage to it in the past too. He said that no erosion of special status guaranteed in the Indian Constitution will be allowed. The 14th GST council meeting chaired by Union Finance Minister Arun Jaitley was recently held here.


However, different trade and other organizations expressed their apprehension that implementation of GST would weaken the special status of the Jammu and Kashmir, which is a consuming state depending upon imports.