After the most crucial four bills got president assent, finally passed in the month of April. All states except Jammu and Kashmir have passed State Goods and Service Legislation in their respective assemblies, paving way for easy transition and implementation of GST. From 1st July GST, it will subsume 16 different taxes.The Union Finance Minster, Mr. Arun Jaitely wrote a letter to the Chief Minister of J&K urging for introduction of the goods and services tax in Jammu and Kashmir from 1st July, 2017 along with the rest of the States.
In his letter the Finance Minister has further mentioned that as per Article 370 of the Constitution, amendments made in Constitution of India are applicable to the State of Jammu and Kashmir with the concurrence of the Government of the State, as the President may by order specify. He urged the Chief Minister to send the concurrence of the State, with any modifications as considered necessary keeping in view the special constitutional position of the State of Jammu and Kashmir, on the Constitution (One Hundred and First Amendment) Act, 2016 for the order of the President.
Further, in his letter the Finance Minister also brought to the notice of the Chief Minister that in case the State of Jammu and Kashmir is not able to introduce GST from 1st July, 2017, it may lead to following adverse impact :
(a) A general increase in prices in the State of all goods being purchased from other States and
(b) Increase in the price of all goods being sold from the State of Jammu and Kashmir to other States which shall have an adverse impact on domestic industry in the State.