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Govt has 'constitutional reservation' with GST: Drabu 12/4/2015 11:48:32 PM Early Times Report Jammu, Dec 4: Expressing reservation on going ahead with implementation of GST, Jammu & Kashmir Finance Minister Haseeb Drabu today said the state has concern over how to address constitutional issue of right to tax services and various exemption to industries. "It is not my reservation. It is government's reservation. Chief Minister had also referred to it. We have two concerns. One concern is how to address my own constitution issue (of our right to tax services) and how to address exemption issue for industries," Drabu told reporters here today. "If I move straight way to GST, forget the constitutional issue, we are bound to suffer," he said while replying to volley of questions about the stand of J&K government on implementation of GST in the State and its reservation with it. Jammu & Kashmir is the only state in the country that has powers to tax services on its own state, the minister said, adding that the J&K Sales Tax 1960 grants powers to the state government to tax services. On exemptions, the minister said that the state would have to find some way to benefit local industry which is currently having exemptions. "Under GST they will get no exemptions. So we have to find some way in which an exemption can be granted for industry that is key area of concern," he said. "We should move to it (implementation of GST in the State) with the caveat to protect our right to tax services and comfort on how I should make a transition and provide exemption as required for industry in J&K," Drabu said. "Now it does seem that GST will go through in this session of Parliament and will be able to start from April 1 2016. At least for 6 months to a year, everything will be in transition", he added. Drabu said that there were lots of issue unresolved such as revenue neutral rate has not been finalised. "If we move to GST, we will have to work out how to protect this right of tax. Both we will find via-media. As far as larger question is, I think GST is far better system", he said. "What happens to toll tax and other these are other issues also. There is lot of fine tuning to be done both on tobacco and alcohol. Those are state issues which will resolve in one two meetings", he added. "J&K as a state will gain from it in terms of revenues but these two concerns remain", he said.   Share This News with Your Friends on Social Network     Comment on this Story

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