‘JK has no serious objection to Goods and Services Tax’
GK NEWS NETWORK
Srinagar, Apr 17: Unlike some other states in India, J&K, according to sources, has no serious objection to the introduction of Goods and Services Tax (GST). Experts believe the new tax regime would be beneficial for net consumer/importing states like J&K.
The GST expected to lead to elimination of a host of taxes including Octroi, Central and State sales tax and entry tax, was initially proposed in Union Budget 2006-07. The new tax regime after missing its earlier deadline of April 2011 could not be implemented even from the next time limit, April 1, 2011.
According to economist Prof Nissar Ali some states have been reluctant to allow certain commodities which earn them bulk of taxes to come under the domain of GST.
“There,” Prof Ali said “are certain commodities which states don’t want to lose to the GST, instead they want to levy them themselves because they generate huge amount of money for them.”
Prof Ali said, “Some states want that they should be allowed to levy supplementary tax on certain commodities which come under GST basket.”
Even as traders’ community in J&K has opposed introduction of the GST tooth and nail, economists and experts believe the new tax regime could help J&K to gain more revenues. “The GST will be beneficial for major importing states. Since J&K is also a major importing state in India, it will gain through the introduction of this tax regime,” Prof Ali said.
State Finance Ministry officials said that J&K has no serious objection to the introduction of GST in the state. “It is only a few amendments which we have suggested and there won’t possibly be any objection from the union Finance Ministry to incorporate them into the new tax regime. So we are ready for its implementation provided it takes off across the country.”
However, the officials, who talked to Greater Kashmir on condition of anonymity declined to comment on a question as to whether the state was mulling any constitutional amendments to clear way for the implementation of this new regime.
After GST is implemented, both the Centre and the states will have the power to levy taxes on goods and services. According to reports the Congress-ruled state governments have agreed to work on the necessary constitutional amendments or implementing of GST.
However, the opposition BJP-ruled states, particularly Uttar Pradesh and Tamil Nadu have strongly opposed the GST.
Pertinently, at a recent meeting of state finance ministers and union finance ministry, the states had asked the centre to allow them to levy taxes on 33 services.
Meanwhile, the state recently revealed that J&K has constituted a cabinet Sub-Committee to deliberate upon the issue of implementation of GST, the constitutional amendments and final shape of acceptance of GST Model.
Lastupdate on : Sun, 17 Apr 2011 21:30:00 Makkah time
Lastupdate on : Sun, 17 Apr 2011 18:30:00 GMT
Lastupdate on : Mon, 18 Apr 2011 00:00:00 IST
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