Kashmir State Goods Service Act Means

What is Kashmir State Goods Service Act?  

 

Kashmir State Goods Service Act

The details about Kashmir State Goods Service Act are explained here.

Jammu & Kashmir will have to pass special laws to be able to implement the Goods and Services Tax as its current Constitutional status does not mandate the applicability of the new indirect tax reform in the state.

The Central-GST (CGST) and Integrated-GST (IGST) Bills, introduced in the Loksabha as part of last legislative exercise in Parliament before the tax regime is rolled out from July 1, extend to the whole of India expect J&K.

While service tax is levied all over the country since 1994, it is not applicable in J&K. The state levies its own taxes for services provided in the state.

This is because Article 370 of the Constitution grants special autonomous status to the state and Parliament of India has power to make laws only on defence, external affairs and communication related matters of the state.

As a result, once CGST and IGST bills are passed by Parliament, the J&K Assembly will have to pass a legislation saying the two laws are applicable to them, official sources said.

This approval by the state assembly will be in addition to the requirement of all states to approve the State-GST law.

Once J&K Assembly passes the laws, the Union Government will have to amend CGST and IGST laws and delete the phrases that they do not apply to the state, sources added.

 

Deletion of the phrase will make the laws applicable to the state.

A separate law for levy of cess on select goods to make up for a kitty to compensate states for any loss of revenue in first five years of GST rollout extends, however, to whole of India including Jammu and Kashmir.

The approval by Parliament and state assemblies to these laws will pave the way replacing the current patchwork of national, state.

The approval by Parliament and state assemblies to these laws will pave the way replacing the current patchwork of national, state and local levies with a single, unified value added tax system and integrating India as one market.

The CGST bill will amalgamate all the indirect central government levies like sales tax, service tax, excise duty, additional customs duty (Countervailing Duty), and special additional duty of customs, surcharges and cesses.

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