Sanjeev Pargal
JAMMU, Dec 8: In a significant decision, Jammu and Kashmir Government today agreed to implement Goods and Services Tax (GST) in the State and set up high level Committee headed by Principal Secretary, Planning Development and Monitoring Department, BB Vyas to draft the legislation, which would be tabled before the Government, and after clearance, in the Legislature.
Official sources told the Excelsior that the Government has, however, kept the option open of protecting the special Constitution position of the State and tax powers being enjoyed by it while drafting the legislation.
Union Finance Minister Arun Jaitley had been stressing on all States including Jammu and Kashmir, which haven’t passed the GST legislation so far to approve it at the earliest to clear decks for implementation of one tax structure across the country. Jaitley had recently admitted that April 2017 deadline would be difficult to meet due to delay in consensus in the GST Council over some issues including duel control.
Describing as “very significant” the decision for implementation of GST in Jammu and Kashmir, sources said the State Government has asked the high-powered committee headed by BB Vyas to draft the legislation within the next three months but taking into account the special Constitutional position of the State and taxation powers enjoyed by it.
“The legislation drafted by the Committee would go to the State Cabinet, and if approved, to the Legislature for final nod before it becomes an Act,” sources said.
Finance Minister Dr Haseeb Drabu had few days back cited special Constitutional provisions of Jammu and Kashmir for delay in implementation of the GST.
Sources said the State Government has deliberated upon the issue and came to the conclusion that it should implement the GST but with the riders so that it’s Constitutional position and special taxation powers are not affected.
Consequently, the General Administration Department (GAD), headed by Chief Minister Mehbooba Mufti has issued the order setting up the high-powered committee to draft legislation for implementation of the GST in the State.
Headed by Vyas, the Committee has been asked to give its report in the next three months.
Other members of the Committee are Commissi-oner/Secretary Finance Depart-ment, Navin Choudhary as Member Secretary, Secretary Law, Justice and Parliamentary Affairs, Abdul Majid Bhat and Commissioner, Commercial Taxes Department Parvez Iqbal Khateeb as its Members.
The Committee has been authorized to call Advocate General of the State as special invitee in the meetings as and when required.
Sources said the Committee would go into details of the GST bill adopted in Rajya Sabha and some State Governments including Bihar and then draft its own bill by ensuring that its special powers remained intact.
As budget session of the Legislature is beginning on January 3 and will conclude by the first week of February, it will not be possible for the Government to introduce the bill in budget session of the legislature as the high-powered Committee has been given three-months to draft the report, which means that it would submit its report around March 10.
Sources said the Government can call special session as done by some State Governments to pass the GST bill.
The GST is a Value added Tax (VAT) and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Central and State Governments.
According to sources, GST could miss the previous deadline of April 1, 2017 set by the Central Government for its implementation across the country as the GST Council, which met in the Union capital few days back had failed to reach consensus on the issue of duel control over some times. It was expected to meet again next week in New Delhi to work out a consensus.
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