SRINAGAR: The Jammu and Kashmir Government has rolled out a comprehensive set of amendments to the Goods and Services Tax (GST) framework, issuing multiple notifications, aimed at tightening compliance, revising tax structures, and streamlining procedures across sectors.
One of the key changes introduced relates to taxation based on retail sale price (RSP). Through amendments to GST Rules, a new provision mandates that the value of supply for specified goods—including pan masala and tobacco products—shall be deemed as the declared retail sale price minus applicable tax.
The formula for tax calculation has also been specified, linking tax liability directly to RSP, thereby reducing scope for underreporting.
In a parallel move, the government amended the GST Act notification to formally include these goods under the RSP-based valuation system. The list covers pan masala, cigarettes, cigars, tobacco extracts, and nicotine-based inhalation products, among others.
Further tightening tax structures, the Finance Department revised GST rate schedules, placing several tobacco-related products under higher tax slabs. While biris were added to the 9% category, products like pan masala, unmanufactured tobacco, cigarettes, and related items were inserted into the 20% tax bracket, reinforcing the government’s revenue focus on sin goods.
The government has also introduced special procedures for rectification of GST orders, particularly in cases involving wrongful availment of input tax credit (ITC). Taxpayers who were earlier denied ITC under Section 16(4), but are now eligible under amended provisions, can apply for rectification within six months. Authorities have been directed to dispose of such applications within three months.
In another significant relief measure, timelines have been prescribed for waiver of interest and penalties under Section 128A. Registered taxpayers can clear dues by specified dates—such as March 31, 2025—to avail waivers, while extended timelines apply in cases involving appellate orders.
The government has also notified special categories of taxable supplies, explicitly bringing online money gaming, online gaming (other than money gaming), and actionable claims in casinos within the GST ambit.
On the compliance side, new provisions have been introduced to facilitate faster GST registration. A system-driven process now allows registration to be granted electronically within three working days based on data analysis and risk parameters. Additionally, small taxpayers with monthly liability below ₹2.5 lakh have been given an option for simplified registration, subject to Aadhaar authentication.
The amendments also clarify refund restrictions and appellate procedures. Notably, no refund will be granted for taxes already paid for periods prior to the enforcement of amended provisions under Section 128A, even if disputes span multiple periods.
Another notification operationalizes provisions of the J&K GST (Second Amendment) Act, 2025, retrospectively bringing several sections into force from October 1, 2025. Additionally, changes have been made in Schedule IV to define “specified actionable claims,” explicitly covering betting, gambling, casinos, horse racing, lottery, and online gaming, aligning J&K’s GST framework with central provisions.
