New Delhi: President Pranab Mukherjee has promulgated two ordinances regarding the introduction of the goods and service tax (GST) in Jammu and Kashmir, completing the roll-out of the indirect tax reform in the Himalayan state, the finance ministry stated on Saturday.
The two ordinances relate to the application of central GST (CGST) and integrated GST (IGST), which deals with inter-state commerce, in the state. On Friday, the state government had passed a State GST Act.
A finance ministry statement said that the two ordinances are applicable in Jammu and Kashmir from Saturday. “With this, the state of J&K has become part of the GST regime, making GST truly a ‘one nation, one tax’ regime," said the statement.
Unlike the rest of India, Jammu and Kashmir, having a special constitutional status, had to adopt a different procedure for introduction of the GST.
State finance minister Haseeb Drabu had on Friday told the assembly that all necessary safeguards to the Jammu and Kashmir state Constitution have been ensured while introducing the GST. Unlike other states, taxation rights for Jammu and Kashmir are enshrined in the state Constitution, and not in the seventh schedule of the Constitution of India.
“Because of the special provisions applicable to the state of Jammu and Kashmir, extra steps had to be taken before the state could join the GST fold," said the finance ministry statement.
President Mukherjee, earlier in the week, gave his ascent to the Constitution (Application to Jammu and Kashmir) Amendment Order 2017 before the two ordinances promulgated on Saturday—CGST (Extension to Jammu and Kashmir) Ordinance and IGST (Extension to Jammu and Kashmir) Ordinance 2017.