The GST Fall out for J & K

The GST strikes a balance between producer and consumer states. Earlier the manufacturing states were getting the cream under Sales Tax and VAT regimes, which has been evened out by implementation of GST. Now the biggest beneficiaries of this tax regime would be the consumer, and the consumer states will be benefitted the most. The state of J & K being the consumer state stands to benefit from GST.

Opposition parties, separatists and Kashmiri businessmen have been opposing the GST, saying it infringes on J&K’s residual political autonomy and its special powers to legislate on financial matters. This is entirely wrong as any central bill can be applied to J & K only when it is passed by the by J & K Assembly. Under clause (1) of Article 370 of the Constitution of India, the concurrence of the Government of the State of J & K is required to apply any part of the Constitution of India to J&K. This time also the J & K Government is following past precedence. Earlier also Central laws have been extended to state. Therefore, the opposition by political parties is not justified.

The GST changes the way one functioning in terms of compliance and collection of taxes. It is a major policy shift that will empower the consumer. The opposition to GST by the Trader Community is primarily coming from those who were not paying taxes under previous regime and now will have to pay taxes compulsorily. The Hawala Transactions will also be adversely impacted.

Non- adoption of GST bill will affect the population of the state adversely, as various items have become cheap in rest of the India but will remain costly as before for the people of J & K. Non-implementation of GST would lead to complete chaos with traders and businessmen being hit the worst and ultimately it would lead to acute scarcity of consumer goods in the State.