The Jammu and Kashmir government is holding a special session of the State Assembly to debate its proposed law on Goods and Services Tax (GST) to "protect" the state’s constitutional position on taxing services.

While the government is set to host the crucial GST Council meeting in the summer capital Srinagar from Wednesday, State’s Finance Minister Haseeb Drabu told Greater Kashmir on Tuesday that a special session of the Assembly would be convened to "approve the GST law which will be in consonance with the state’s existing constitutional position. "

Drabu said while other states draw their power of taxing from Article 42 of the Constitution of India, J&K draws this power from section 5 of the J&K Constitution. "Accordingly changes have been proposed in the draft bill in all the three categories—SGST, CGST and IGST keeping in view the state’s constitutional position," Drabu said.

He said special session would likely be convened next month.

In December last year, the J&K government had formed a high-level committee to look into the issues, including drafting of legislation, pertaining to joining Government of India’s GST and had asked the panel to submit its report in three months.

According to the order, the committee was tasked to draft the legislation with regard to proposed GST in the State while "paramounting the measures which can protect the special Constitution(al) position and taxation powers of the State being enjoyed by it."

Commissioner/Secretary Finance Navin Choudhary, one of the members of the panel, said J&K will have its own GST law which will have provision similar to the central law that would allow the State to comply with the GST regime.

"The process (for drafting bill) is being worked out," he said.

Another official, who is part of the panel, said the State has conveyed to the Government of India in categorical terms that J&K’s constitutional provisions have to be "fully protected" under the GST regime 

Jammu and Kashmir enjoys autonomous status under Constitution of India and as per the experts will require drafting its own GST law. While other States were required to enact their SGST Act through Article 246A (1) of the Constitution of India, J&K levies the tax by exercising the enabling power under Section 5 of J&K Constitution.

In its latest Economic Survey, the Government has concluded that the State should implement the GST with the riders that J&K’s constitutional position and special taxation powers are not affected.

The GST is a value added tax and is proposed to be a comprehensive indirect tax levied on manufacture, sale and consumption of goods as well as services by the Central and State governments. The State is among 8 States which are yet to ratify the GST.

The State administration is gearing up for the meeting of the GST Ccouncil headed by Union Finance Minister Arun Jaitley, and the General Administration Department has appointed 69 KAS officers as liaison officers for the meeting.

 17 May 2017, 12:38 PM