Cabinet nod to GST bill evokes mixed response in Kashmir MUKEET AKMALI SmallerDefaultLarger Srinagar, Dec 18: The union cabinet approval to constitution amendment bill on Goods and Service Tax (GST) paving way for its introduction in the current session of the Parliament has evoked mixed response from the business community in Kashmir. While majority of the business associations in Kashmir believe the new tax regime will erode the “financial autonomy” of the state, other traders’ groups and industrialists’ bodies opine that “GST will bring about uniformity in the taxation system.” President Kashmir Chamber of Commerce and Industry, Sheikh Ashiq said: “We are against the implementation of GST in J&K, as it will affect our financial autonomy.” The state government, he alleged, has failed to take into confidence the local business associations and chambers before negotiating with the centre on the implementation of GST. Former president, Federation Chamber of Industry Kashmir (FCIK), Shakeel Qalander said the state government should not implement GST without considering its all pros and cons. “State earns huge amount of revenue from entry tax, but after GST implementation the amount will go to the central government. This would put stress on the beleaguered J&K economy,” he said. Pertinently, J&K is the only state in India having power to tax both goods and services. “All other states of India have the power to tax goods only. Under GST regime, J&K will have to surrender its exclusive authority to tax services,” experts said. The state government earlier constituted a six-member official panel to study its implications on taxation autonomy of the state. The General Administration Department (GAD) constituted the panel headed by Advocate General, M I Qadri to examine the ramifications of the Constitutional Amendment Bill - aimed at setting up GST regime - on autonomy of the state. Many traders’ bodies in Kashmir, however, have a different take on the issue. “GST is good for us. We have already asked the Finance Minister Abdul Rahim Rather that we are not averse to its implementation provided the special status of J&K is not disturbed,” President, Kashmir Traders Federation, Jan Muhammad Koul said. Koul said the GST will give respite to the traders from “the harassment we face in various offices entrusted to collect taxes.” On GST, President, Federation Chamber of Industry Kashmir, Muhammad Ashraf Mir said: “We will welcome the implementation of GST.” The GST is a Value Added Tax (VAT). Once the bill is passed by the Parliament, it will replace all indirect taxes levied on goods and services by the Indian Central and State governments. The GST will be implemented concurrently by the central and state governments as the central GST and the state GST respectively. Petroleum was one of the contentious issues between the Centre and the states responsible for delaying the Bill. Now it has been decided that petroleum will be included in GST but Centre and states will be allowed to impose their current taxes on it. GST compensation to states for five years will be part of the Bill. Centre will provide full compensation for three years and then progressively reduce it
Posted on: Fri, 19 Dec 2014 06:48:10 +0000
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