Jammu & Kashmir businesses apprehensive over GST impact
The business community in Jammu and Kashmir is apprehensive about the implementation of the Goods and Services Tax, fearing the state’s financial autonomy may be compromised and huge losses i ncurred due to lack of awareness on the ground.
The business chambers in Srinagar and Jammu plan to seek an appointment with the Union finance minister Arun Jaitley, who will be in Srinagar on May 18 and 19forthe crucial GST council meeting to decide the final tax rates.
J&K enjoys special status in the Constitution of India and has to draft its own GST law. Although the J&K government has decided to convene a special assembly session to pass laws for implementation of GST in the state on July 1 as per the scheduled roll-out, the business community claimed that the government has done nothing to create awareness among stakeholders.
“The government is doing nothing to allay fears of business community. If they finalise the rates in upcoming meeting, what will be left to the state legislature? We cannot compromise our financial autonomy,” Mushtaq Ahmad Wani, president of Kashmir Chamber of Commerce and Industry, told ET.
The business community feels that the government is keeping them in ‘complete darkness’ as they don’t know whether the exemptions and special rebates applicable in the state will continue or not.
“We have no idea about GST. We just understand that things will be expensive. But I don’t think we have any financial autonomy left,” Javed Burza, president Kashmir Hotel and Restaurant Owners Federation told ET Customs and Central Excise Division in Srinagar recently convened an awareness session regarding GST at its Srinagar office, where businessmen expressed their concerns as well.
“Flexible band of the rates decided by the GST council can satisfy the special status of the state. As per the reports, GST law would increase the revenue of J&K which is largely a consumer state,” Srinagar based Assistant Commissioner of Customs and Central Excise, Jayapal J told ET adding, “right now J&K government taxes only 26 services.”
Another government official, wishing anonymity stated that there could be an opting out clause-in the tax rates-in GST, what is prevalent in European Union, which would take care of the special status of the state.
The Chamber of Commerce and Industry inJammu claimed that they would welcome GST, but were not prepared for its implementation.
“There would be great chaos and he losses. Nobody knows what to do. We have to see how industries would be compensated under the new law,” president JCCI, Rakesh Gupta told ET.
J&K government has informally asked the businessmen to register for GST and the process has started but the traders were not aware what would be the financial repercussions.
“We are lagging behind in awareness campaign especially in Kashmir. All our staff is ready but state legislature has to do pass the law and then things would be clear,” a senior tax official in the state told ET. Source -http://economictimes.indiatimes.com [16-05-2017]