Lok Sabha clears 2 bills extending GST to J&K

Dream of one tax regime is now met, says Jaitley

Two bills extending Central GST and Integrated GST to Jammu and Kashmir were passed by the Lok Sabha on Wednesday, with finance minister Arun Jaitley saying that it will ensure greater economic integration of the state with rest of the country.

He asserted that special status of J&K was “never meant to create economic impediment” as he maintained that the GST is in the larger interest of traders and consumers of the state.

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 were passed by the Lower House through voice vote, and are aimed at giving effect to the formal amendments

When we have access to Parliament, we should not frequently resort to Ordinance — Adhir Ranjan Chowdhury, Congress MP

required in Central GST (CGST) and Integrated GST (IGST) Acts by removing the exemption that was carved out for J&K.

Replying to a debate on the bills, Mr Jaitley said it was a positive step that Jammu and Kashmir has been integrated with GST and the dream of one tax regime is now met. He hit out at the Congress for its reported claim that GST would infringe upon the special status of J&K.

The finance minister said a national party such as the Congress should not have got itself entangled by taking such a stand which is the “argument of the separatists”.

He asserted that the “special status (was) never meant to create economic impediment” for the state whose government, Assembly and people he “complimented” for the roll out of the new tax regime. “If they (J&K) didn’t integrate, then the 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,” the minister said.

“J&K is a consumer state and GST being a destination-based tax, the revenues of the state would increase,” he said.

He said if GST was not put in place in J&K, then customers would prefer to buy products like cars and refrigerators from outside the state, thus causing economic loss to traders and customers of the state.