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| J&K wants implementation on own terms, sub committee to examine first | | Introduction of ‘Central Goods Services Tax’ regime | |
Cannot allow tampering with special status: Rather
Early Times Report
Jammu, Feb 11: In a landmark step forward towards implementation of GST (Goods and Services Tax Regime), the Empowered Committee of Finance Ministers from all the states, today gave a nod to the introduction of the constitutional amendment Bill in the forthcoming Budget session of Parliament which will eventually pave way for replacement of existing Sales Tax and VAT system by the new regime. The J&K Finance Minister A R Rather has albeit sounded on a cautious note that implementation of CGST (Central Goods Services Tax) has to be there in J&K on the terms of the state keeping in view the special status granted to it under the Indian Constitution.
“The new tax regime to be adopted by the states independently is a welcome step as it will have in place a better and easy system of tax collection……it will not burden the tax payers in any respect as the rates will not be affected or increased”, said the Finance Minister. “But we cannot have implementation of Central GST which will tamper the special powers enjoyed by the J&K state”, he asserted while speaking to ET. In other words while the GST can be independently implemented by adopting the Law in our own state as per the ‘needs and tax environment’ in the state but that ‘freedom’ cannot be given to Centre when it implements its own CGST in all other states on services and goods they wish to.
While the Finance Minister did not divulge much and refrained from elaborating further, the bottom line of his speech at the crucial meeting today is that J&K government would allow bringing under purview of CGST only those goods and services which they would allow and desire so, keeping in view the interests of the state. And this all they will and can do under the special status enjoyed by the state. While the Parliament will first bring the constitutional amendment bill which will be followed by the step of granting powers to the state to adopt their own law and later implement the CGST too, it will take quite some time to see the system in place. However, not to take any chance, the FM, expert on financial and constitutional matters did not only sound caution in the meeting of empowered committee but also during the meeting later in the day with Union Finance Minister too.
Not only this, back home the government has set up a cabinet sub committee which is led by the Finance Minister AR Rather himself which will study and examine as to what extent and limits the state can allow implementation of the CGST in J&K. and
For reasons clear and apparent, Rather vehemently stressed and called upon the Empowered Committee to evolve a ‘democratic solution for switching over to GST regime adding that the State of Jammu and Kashmir has a special status under the constitution of India where under the State has been given special dispensation in the matters of legislative powers in contrast to other States.’ “I have already conveyed my concerns many times to the Empowered committee during the course of the meetings……however, it is time Centre keeps into consideration this stand of J&K while designing the CGST”, he added. He said the cabinet Sub-Committee would deliberate upon the sensitive issue of implementation of CGST, the constitutional amendments before the law can be allowed to be introduced or implemented in the state.
In order to make his point clear, the J&K Finance Minister elaborated that even as the Parliament is an elected forum , but it should not be viewed as a body that was out to exercise a veto against the interests of the States. He called upon the others States to take the issue of these amendments sportingly and facilitate a debate on these amendments in the Parliament. It is pertinent to mention here that that introduction of GST, which Finance Ministers under the banner of empowered committee have been discussing threadbare for the last over two years, will do away with the existing system of ST and VAT and will primarily benefit the states in terms of facilitating the tax collection system. Though the FM claimed the new regime will not necessarily put any burden on the common masses, the broader contours will only get clear once the GST is in place. The new regime will also replace some of the duties imposed at present in the states. Though J&K is the only state which at present also has been imposing taxes on some services, it certainly doesn’t want Centre to directly impose its taxes as would be envisaged under CGST.
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