The Lok Sabha passed two bills extending Central GST and Integrated GST to Jammu and Kashmir, with Finance Minister Arun Jaitley saying the step will ensure greater economic integration of the state with rest of the country.
The Central Goods and Services Tax (Extension to Jammu and Kashmir) Bill and the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Bill passed by the House by a voice vote are aimed at giving effect to the formal amendments required in Central GST (CGST) and Integrated GST (IGST) Acts by removing the exemption that was carved out for J&K.
The GST, which replaced more than a dozen central and state levies, came into effect from July 1 all over the country except J&K where the assembly passed a resolution adopting the constitutional amendment only on July 5. Thereafter, the President issued an ordinance extending the provisions to the state. This was necessary because of the special status that J&K enjoys in the Constitution.
The J&K assembly then passed the Jammu and Kashmir Goods and Services Tax Act, 2017 which came into force on July 8, 2017. As Parliament was not in session and an urgent legislation was required to be made, the President had promulgated the Central Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017 and the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017 on July 8.
Quick Facts about Goods and Services Tax (GST):
The GST is a destination-based, single indirect tax that is levied on consumption of goods or use of services across India.
It was rolled out in India from July 1, 2017.
GST replaced 16 levies (7 central taxes and 9 state taxes), consequentially creating India as one market with one tax rate.
Goods and Services Tax (GST) Council headed by Union Finance Minister Arun Jaitley and comprising representatives of all states have finalised four tax brackets under GST viz. 5%, 12%, 18% and 28%.