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Jammu and Kashmir joins GST from today

LiveMint logoLiveMint 08-07-2017 PTI

New Delhi: Jammu and Kashmir, the only state that missed the 1 July rollout date of goods and services tax (GST), on Saturday joined the new indirect tax fold making GST a true ‘one nation, one tax’ regime.

President Pranab Mukherjee promulgated on Saturday two ordinances—the Central Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017 and the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017—extending the domain of Central GST Act and the Integrated GST Act to the state from 8 July.

The Jammu and Kashmir Goods and Services Tax Bill 2017 was adopted by the state assembly on Friday. With this, the Union ministry of finance said, Jammu and Kashmir has become part of the GST regime, making GST “truly a ‘one nation, one tax’ regime”.

“Congratulations to the Mehbooba Mufti led PDP-BJP Government of J&K for making the GST constitutionally possible in the state,” tweeted Union finance minister Arun Jaitley. GST was rolled out in the country on 1 July with much fanfare marked by a midnight programme in Parliament that was attended by Mukherjee and Prime Minister Narendra Modi, among other dignitaries.

However, because of the special provisions applicable to Jammu and Kashmir, extra steps had to be taken before the state could come under the GST fold. On 6 July, the state had taken the first step towards adopting the GST regime with the President of India giving assent to the Constitution (Application to Jammu and Kashmir) Amendment Order, 2017.

Resultantly, the One Hundred and First Amendment Act, 2016 to the Constitution of India that paved the way for introduction of GST in the country, became applicable to the state of Jammu and Kashmir also. Following this, the Jammu and Kashmir Goods and Services Tax Bill, 2017 was passed by the State Legislature yesterday, empowering the state to levy State GST on intra-state supplies with effect from 8 July.

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