President Pranab Mukherjee on Friday gave his assent to the implementation of Goods and Services Tax (GST) in Jammu & Kashmir on the recommendation of the state cabinet. Official sources said that the President cleared the order and sent it to Ministry of Home Affairs for further action.
The Legislative Assembly of Jammu & Kashmir on July 5 passed a resolution to implement GST in the state after extensive debates by lawmakers. The resolution was passed for the protection of the special status of the state in the tax regime said Finance Minister Haseeb Drabu. “There would be enough safeguards to the Constitution of Jammu & Kashmir,” Drabu said in his reply on the second day of the GST in the state assembly.
However, the implementation of the safeguards was left unexplained to which the Opposition raised slogans in protest.
The resolution stated: “This House resolves that the Government of Jammu and Kashmir may give consent to the adoption of the GST regime by application of relevant amendments made to the Constitution of India in a modified manner to safeguard the existing special constitutional position of J&K in the Union of India and the legislative powers under the Constitution of Jammu and Kashmir.”
With the exception of Jammu & Kashmir, all states have implemented GST which was rolled out on July 1.
The presidential order relates to certain provisions of the Constitution issued by the President through Article 370 that grants a special autonomous status to the state. Drabu planned to propose the enactment of State Goods and Services Tax (SGST) to the Assembly on receipt of the Presidential order.
This was the first time in the history of the Jammu and Kashmir Assembly that a resolution, seeking a presidential order on a constitutional amendment, was discussed and passed.