One Country- One GST

Jammu and Kashmir legislative assembly adopted a resolution seeking to implement Goods and Services Tax in the State amid strong opposition that believed that extending GST to the state will undermine the special status of Jammu and Kashmir. Currently, the Central GST Act is not applicable to the state of Jammu and Kashmir. The state has now recommended the resolution to President Pranab Mukherjee and through the Presidential order, GST will be applicable to the state which has its own separate constitution. However, this resolution will not erode the special status given to the state and there will be safeguards to protect the fiscal autonomy of the state. This resolution was moved by Haseeb Drabu, Finance Minister of the state and passed by voice vote despite vehement opposition. The Legislative Council has also adopted the resolution by voice vote. At the same time, the resolution moved by the Finance Minister of J&K also called for a presidential order to maintain the status and its power to set its own taxes. Darbu assured to those opposing the resolution that “ Section 5 ( J&K Constitution) and Article 370 of the Constitution of India will remain unchanged. Section 5 of J&K statute gives the state the exclusive powers of taxation. Darbu assures that Section 370 will not be compromised in any way. With Jammu and Kashmir passing this resolution all the states have implemented GST.