Lok Sabha passes two key bills for implementation of GST in J&K

On August 2, 2017, Lok Sabha passed two bills, CGST (Extension to Jammu and Kashmir) Bill, 2017 and IGST (Extension to Jammu and Kashmir) Bill, 2017, extending Central Goods and Services Tax (GST) and Integrated Goods and Services Tax (GST) to Jammu and Kashmir (J&K). 

More Information about bills extending Central GST and Integrated GST to Jammu and Kashmir:

The CGST (Extension to Jammu and Kashmir) Bill, 2017 provides for levy of the GST on goods sold and services rendered in the state while the IGST (Extension to Jammu and Kashmir) Bill, 2017 seeks to levy the tax on inter-state movement of goods.

• The two Bills 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 Jammu &Kashmir.
• Finance Minister Arun Jaitley has mentioned that GST is in the larger interest of traders and consumers of Jammu and Kashmir and extending Central GST and Integrated GST to Jammu and Kashmir will ensure greater economic integration of the state with rest of the country.

Events Leading to Implementation of GST in Jammu & Kashmir:

GST came into effect from July 1, 2017 all over the country except J&K as J&K assembly had not passed a resolution adopting GST.

• Thereafter, President issued an ordinance extending the provisions of GST to Jammu & Kashmir. 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.

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 MinisterArun Jaitley and comprising representatives of all states have finalised four tax brackets under GST viz. 5%, 12%, 18% and 28%.