GST implementation in J-K marks economic integration of country: Jaitley
The Union finance minister said the Goods and Services Tax was in the larger interest of traders and consumers of J&K for which the state government, its assembly and people should be complimented.india Updated: Aug 03, 2017 00:23 IST
Finance minister Arun Jaitley on Wednesday said the implementation of Goods and Services Tax (GST) in Jammu and Kashmir marks the economic integration of the country, dismissing claims that the move infringes upon the special status of the state.
“The dream of economic integration of the country has been fulfilled,” he told the Lok Sabha, which passed two bills extending Central GST and Integrated GST to J&K.
The Central Goods and Services Tax (Extension to Jammu and Kashmir) Bill and the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Bill are aimed at giving effect to the formal amendments required in Central GST (CGST) and Integrated GST (IGST) Acts by removing the exemption that was given to J&K.
Jaitley said the argument against GST in J&K was given by separatists. “A national party like Congress should not have got into it. The special status was never created for economic impediment of the state,” he said.
While CGST provides for levy of GST on goods sold and services rendered in J&K, IGST seeks to levy the tax on inter-state movement of goods. The two bills replace an order promulgated by the President.
Jaitley said the GST was in the larger interest of traders and consumers of J&K for which the state government, its assembly and people should be complimented.
“If they (J&K) didn’t integrate, then traders would not have got input credit and the tax on final products would have been higher... That would have made products costlier and consumers would have to pay more,” he said.
Jaitley said J&K was a consumer state and GST being a destination-based tax will help in increasing the revenues of the state.
Earlier, Congress member Shashi Tharoor said that extending GST to J&K has “serious impact” as it alters the taxation power of the state. “By impinging on the state’s right, the Centre is violating the Constitution. J&K must be approached with sensitivity as it is facing increased terrorism. We need to do everything to protect the interest of the state and see that it is not undermined by the finance ministry’s terrorism,” he said.
First Published: Aug 02, 2017 23:31 IST