Despite the initial opposition to the implementation of goods and services tax (GST) regime in Jammu and Kashmir, at least 26,400 new dealers have registered themselves under the new tax law, thus increasing the state’s commercial tax base count of dealers to 71,400.
“71,400 dealers (migrated as well as new registrations) stand registered on the GST portal, taking the tax base count of dealers also to 71,400,’ the economic survey report 2017 reads.
In J&K, GST was implemented from 8 July 2017 and the existing dealers of VAT are being migrated to the GST system.
“Till date, a total of 45,000 VAT dealers stand migrated to the GST portal. New registration process is also in full swing and till date, a total of 26,400 dealers stand registered on GST portal. Out of this, while 13,700 dealers pertain to central jurisdiction, 12,700 pertain to the state jurisdiction,” the ESR, tabled in the legislature recently, mentions.
The report states that the central GST Act 2016 was passed by the parliament in the present form and was notified by the government of India on 12 April 2017. It was applicable to whole of India, except Jammu and Kashmir.
The GST regime was implemented across India from 1st July 2017, except Jammu and Kashmir. The central GST Act 2016 was not applicable to Jammu and Kashmir as the powers to tax in J&K are enshrined under section 5 of J&K constitution.
“After thorough analysis of the issue and taking into account all safeguards, the government of Jammu and Kashmir tabled a resolution in state assembly on 06-07-2017 where it was unanimously resolved that only those articles/clauses of 101st Constitution Amendment will be assented to be extended by government of India to J&K which were extremely necessary to implement the central GST/IGST/ITC in J&K under Article 370 of Constitution of India, while keeping intact the powers of J&K to tax in the state under section 5 of J&K constitution,” the report adds. “The draft presidential order that could be passed by government of India was also analysed critically and discussed in the state assembly in its special session on 06.07.2017. Accordingly, with the assent of J&K by way of passing of resolution in the state assembly on 06-07-2017, the presidential order under Article 370(1) of the constitution was issued by president on 6th July 2017 with the concurrence of government of Jammu and Kashmir. The constitution (application to Jammu & Kashmir) amendment order 2017 was published on 6/07/2017. The powers of J&K of Jammu & Kashmir to impose tax under section 5 of the constitution of J&K shall remain intact. Another two presidential orders were passed on 08-07-2017 whereunder the CGST and IGST were made applicable to J&K w.e.f 8-07-2017. J&K also passed SGST Act 2017 in the state assembly which has been notified on 06-07-2017. The State GST council stands also constituted in terms of SGST Act 2017. Thus the GST regime came into force in J&K w.e.f 08-07-2017 after fully safeguarding section 5 of J&K state constitution,” the report adds.