The Jammu and Kashmir government will convene a special assembly session to discuss the implementation of the new GST regime. The move comes amid stiff opposition from opposition parties and traders, that the move will dilute the special status of the state under article 370 of the Constitution.
Due to lack of consensus on the new GST policy, Jammu and Kashmir had missed the July 1 deadline for its implementation.
The opposition parties and traders had accused the PDP-BJP government of tacitly backing the new GST regime without the taking them into confidence.
Kashmir-based trade bodies and civil society have joined forces to form a 'Kashmir Coordination Committee' against the implementation of the new tax regime.
According to fomer president of Kashmir Chamber of Industries and Commerce, Shakeel Qalandar, the committee will put pressure on the government to come up with its own laws on the GST.
The traders and opposition parties, especially the National Conference, are at the forefront of opposing the new GST policy in the state.
Their main concern is that the 101st Amendment Act of the Constitution will be extended to Jammu and Kashmir, bringing the state within the ambit of GST and deprive it of the power to collect taxes.
“We reject the central law. We also oppose its implementation in Jammu and Kashmir,” said Qalander.
Kashmir Economic Alliance, which has supported the KCC's stand, is of the view that the government should implement its own law on GST to take care of the state’s autonomy and its economy.
“We are mulling bringing all other associations and organisations under the KCC to make it a movement against implementation of GST in its present form,” said Qalander.
"Untill we get constitutional, administrative and economic safeguards, the National Conference will not accept the GST in its present form,'' said former finance minister Abdul Rahim Rather. "If the government implements the GST in its present form, they will have to face the consequences."
But senior PDP leader Muzaffar Hussain Baig believes it is impossible for the state to implement its own GST. Baig believes it would lead to constitutional crisis as the government of India would be required to amend at least two articles in the Constitution; Jammu and Kashmir state will have to amend Section 5 of the state constitution that empowers it to impose taxes.
The oppostion is also upset over the fact that, even while calling a session of assembly on July 4 to discuss the implementation of GST, Finance Minister Haseeb Drabu has announced that the government was likely to implement the new tax regime from July 6. “Why for are they holding the assembly session now if they have already decided to implement GST from July 6?” Rather asked.
Meanwhile, there is some respite for the government. Senior separatist leader Syed Ali Shah Geelani said, in a statement, that the stakeholders should sit together and sort the matter out.
