Haseeb Drabu says, J&K unlikely to implement GST

Sri Nagar : The state finance minister of Jammu and Kashmir Haseeb Drabu on Wednesday said that, "Jammu and Kashmir is unlikely to implement GST regime as it compromises its special position.... J&K is the only state that has the authority to legislate on all taxes and this will go with the new GST regime.

The state finance minister was speaking at a function at Kashmir University on current fiscal's Economic Survey by Chief Economic Advisor Arvind Subramanian. The Centre plans to roll out the new indirect tax regime Goods and Services Tax (GST) by April 1, 2016.

The Constitution Amendment Bill on GST was referred to a Rajya Sabha select Committee for scrutiny. The Bill was cleared in the Lok Sabha.

"Positive impact of the 14th Finance Commission award is being offset by various measures including, for instance, the new GST regime which will limit the scope of any intervention by the states because GST will uniform tariff structure," Drabu said.

He, however, added that GST is an outstanding and efficient system.

Drabu said while radical restructuring of economic policy that paved way for abolishing of Planning Commission has been a key intervention so far, there is no follow up.

"States are in chaos about whether they should have a plan or not. The 14th Finance Commission has changed fiscal federal system in India (but) there is no corresponding follow up about how this will work," he said. 

Get all updates by Like us on Facebook and Follow on Twitter