SrinagarThe Jammu and Kashmir Legislative Assembly on Wednesday passed a resolution for implementing the Goods and Service Tax (GST) in the state amidst protest by opposition parties.
With this Jammu and Kashmir has also come under the pan-India Goods and Services Tax.
The resolution was adopted by a voice vote after turbulent rounds of debates and heated arguments between the lawmakers in the special assembly session that lasted for four days.
The resolution talks about safeguarding the special position of the state, but the Opposition termed it vague. The Opposition urged the government to make its own GST law like it had done for VAT.
The resolution moved by state Finance Minister Haseeb Drabu, was adopted through a presidential order calling on the Centre to safeguard the special status and exclusive taxation powers of the state.
He said Article 370 of the constitution is not compromised in any way through this presidential order.
Not convinced opposition National Conference, the Congress, the CPI(M) and an Independent MLA protested against implementing the new indirect tax regime in the state in its present form.
Earlier, replying to the debate, Drabu said the resolution calls upon the Centre to implement the GST in the state while incorporating safeguards for protecting its special status and exclusive taxation powers.
“We will appeal, argue, debate and discuss with the Government of India, as a matter of principle, section 5 of the J-K constitution, which gives us exclusive powers of taxation, shall be protected,” he read from the draft of the resolution.
“The GSTN council will not be a way to subvert the process and enough safeguards will be built as regards the state of Jammu and Kashmir empowering the representatives of Jammu and Kashmir and bringing in under the ambit of Article 370,” Drabu said.
He said the business activity in the state had dropped to almost 50 percent due to non-implementation of the GST after the new regime was rolled out in the rest of the country on 1 July, causing losses to the state exchequer.
Giving comparative data, the finance minister said while 2,000 truckloads of goods were imported on 4 July last year, only 1,000 truckloads were imported on the day this year.
He said export of goods from the state has also dropped from 300 truckloads on this day last year to 150 this year, a 50 percent decline in trade.
On the revenue earned by the state, Drabu said it had dropped from Rs 82 crore on 4 July last year to Rs 40 crore yesterday.
“This shows that business and trade in Jammu and Kashmir cannot function without the GST,” he said.
Responding to the opposition charges, the finance minister said there was no compulsion on the government to bring a resolution in the Assembly on the GST but it was done as part of “restoration of a process”.
“If the GST overwrites Article 370 (of the Indian constitution) or section 5 (of the J-K constitution) I will not come back to this House,” Drabu
“If the GST overwrites Article 370 (of the Indian constitution) or section 5 (of the J-K constitution) I will not come back to this House,” Drabu said.
Later, the Finance Minister made similar assertions in the Upper House regarding GST.
After the assurance of Dr Drabu, both the Houses passed with voice vote the Resolution on extension of GST to J&K.
This House resolves that the Government of Jammu and Kashmir may give consent to the adoption of the GST regime by application of relevant amendments made to the Constitution of India in a modified manner to safeguard the existing special constitutional position of Jammu and Kashmir in the Union of India and the legislative powers under the Constitution of Jammu and Kashmir, the resolution which was moved by Dr Drabu in the legislature on Tuesday states.
Traders in Srinagar had staged a march against the proposed implementation of GST, which they claimed would lead to erosion of the special status and the fiscal autonomy of Jammu and Kashmir.