Srinagar, Aug 1: The State Cabinet Wednesday approved a Cabinet Sub-committee report on state’s response to proposed central legislation for replacement of existing Sales Tax and VAT system by Goods and Service Tax (GST) regime, while underlying that the J&K Government would come up with its own law on the matter.
Sources told Greater Kashmir that the report of the 4-member committee headed by Finance Minister Abdul Rahim Rather was approved by the Cabinet which met here under the chairmanship of Chief Minister Omar Abdullah.
The Government of India had sought opinion from JK Government along with other states on the implementation of the GST regime. In February this year, the Empowered Committee (EC) of Finance Ministers from all the states gave a nod to the introduction of the constitutional amendment Bill which would pave way for introduction of the regime.
However J&K Finance Minister sounded a caution to the EC that implementation of CGST (Central Goods & Services Tax) in JK has to be carried out on the terms of the state keeping in view the special status enjoyed by it under the Indian Constitution.
A senior minister said the J&K Government would decide for itself how the new regime is to be implemented in JK.
“The state will come up with its own law for implementation of the Goods and Service Tax regime,” said the minister. “We cannot directly implement Central GST which will tamper the special powers enjoyed by the state.”
The minister said once the state comes up with its own law, it would empower the government to allow bringing under purview of CGST only those goods and services which they approve for.
A senior official said the proposed GST regime envisages subsuming all other taxes like excise duties, additional duties of excise, sales tax, VAT and Central Sales Tax into a uniform tax structure.
In other decisions, the Cabinet accorded sanction to the creation of 1129 posts of Assistant Professors for various government degree colleges to address the deficiency and to improve the higher education scenario in the state.
The Cabinet also approved the transfer of land measuring 6 kanals belonging to J&K Industries at Muthi Jammu against compensation of Rs 50 lakh per kanal and 6 kanals of land belonging to J&K Industries situated at Solina Srinagar against payment of compensation of Rs 70 lakh per kanal to the Service Selection Board J&K for construction of its office complexes.
The Cabinet also approved allotment of land measuring 3 kanals 2 marlas and 166 sft on lease belonging to Srinagar Development Authority situated at Sector 3rd Doodganga Srinagar in favour of Life Insurance Corporation of India. The allotment has been approved under Article 256 clause (2) of Constitution of India read with relevant provisions of J&K Land Grants Act 1960 through Ministry of Finance for the construction of Divisional Office of Life Insurance Corporation of India.

Lastupdate on : Wed, 1 Aug 2012 21:30:00 Makkah time
Lastupdate on : Wed, 1 Aug 2012 18:30:00 GMT
Lastupdate on : Thu, 2 Aug 2012 00:00:00 IST