Jammu and Kashmir finance minister Haseeb Drabu said the shift to goods and services tax marks the emergence of a new federal India and that the state will convene a special session in June to pass the law on its own terms to preserve its special status.
The crucial GST Council meeting -to be chaired by finance minister Arun Jaitley on May 18-19 -will decide on tax rates before GST rollout from July 1.The tax brackets are 5, 12, 18 or 28%.
Referring to GST as the most signifi cant tax reform since In dependence, he said sta te revenue is likely to go up about Rs 2,000 crore.
“We might be behind the schedule, but we will ta ke it to assembly and get the GST law passed, most probably in the last week of June. We will try our best to work out a system which is in consonance with the regime and also protect domestic inves tors,“ Drabu told ET.
Drabu said the decisions will be seen as Srinagar declaration for entry into the new tax regime. With the GST system, he said, no new law is being extended to the state and that things are just being redesigned.
“In 1991 the entire economic regime was changed and no state was consulted. Today, even on a change in rate, everybody is consulted. This is the emergence of a new federal India,“ said Drabu, clarifying that there is no conflict between GST council and legislature.“GST council is the first federal institution in the country. It is a new concept, which has to be seen in a new light.“
He said the state has already changed the proposed administrative tax structure into advisory consultancy system.
The Economic Times New Delhi, 18th May 2017
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