Jammu and Kashmir is unlikely to implement the GST regime as it will take away the State’s authority of legislating on taxes, State Finance Minister Haseeb Drabu said today.
“J&K is unlikely to implement GST regime as it compromises its special position…. J&K is the only state that has the authority to legislate on all taxes and this will go with the new GST regime, Drabu said.
The State finance minister was speaking at a function at Kashmir University on current fiscal’s Economic Survey by Chief Economic Advisor Arvind Subramanian.
The Centre plans to roll out the new indirect tax regime Goods and Services Tax (GST) by April 1, 2016.
The Constitution Amendment Bill on GST was referred to a Rajya Sabha select Committee for scrutiny. The Bill was cleared in the Lok Sabha.
“Positive impact of the 14th Finance Commission award is being offset by various measures including, for instance, the new GST regime which will limit the scope of any intervention by the states because GST will uniform tariff structure,” Drabu said.
He, however, added that GST is an outstanding and efficient system.
Drabu said while radical restructuring of economic policy that paved way for abolishing of Planning Commission has been a key intervention so far, there is no follow up. (Agencies)