New Delhi, August 4: Central government has got a major success to roll out Goods and Services Tax in Jammu and Kashmir on Thursday as Lok Sabha passed two bills extending Central GST and Integrated GST to the valley.
Notably, the CGST and IGST bill which is an extension to Jammu and Kashmir were passed by the House by a voice vote 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 carved out for J&K.
Meanwhile, Minister Jaitley repeated saying that said it was a positive step that Jammu and Kashmir is integrated with GST and the dream of one tax regime is now met. He also slammed Congress for its false report which claimed that GST would infringe upon the special status of Jammu and Kashmir.
The CGST (Extension to Jammu and Kashmir) Bill, 2017 provides for levy of the GST on goods sold and services rendered in the state while the IGST (Extension to Jammu and Kashmir) Bill, 2017 seeks to levy the tax on inter-state movement of goods.
The GST, which replaced more than a dozen central and state levies, came into effect from July 1 all over the country except JK where the assembly passed a resolution adopting the constitutional amendment only on July 5. Thereafter, the then President Pranab Mukherjee issued an ordinance extending the provisions to the state. This was necessary because of the special status that J&K enjoys in the Constitution. The Jammu and Kashmir assembly then passed the Jammu and Kashmir Goods and Services Tax Act, 2017 which came into force on July 8, 2017.