Will JK face double taxation from July 1? GST Row

From July 1 onward people in Jammu and Kashmir may have to face brunt of double taxation as the state government has failed to evolve consensus over implementation of Goods Service Tax (GST) regime, with opposition terming its extension as a direct attack on “fiscal autonomy” of JK.
GST is scheduled to be implemented from July 1 across India however its implementation would put JK in a fix. Would supplies coming to the state be taxed under GST as well as state tax, making goods and services in JK costlier than rest of the country.

“Due to non-implementation of GST, people in JK have to pay double taxes both GST and state taxes,” said a senior Finance Department official adding that “as our state is consumer state, most of our supplies come from outside so that means goods coming here would be taxed first under GST and then under the existing state’s taxation system.”
The new tax regime would replace multiple indirect taxes levied by the various state governments and the Union government such as Central excise duty, Sales Tax/VAT, Central Sales Tax, Service Tax, Entry Tax, Octroi, Luxury Tax etc.
However, in Jammu and Kashmir, the government decision to implement GST has met stiff opposition from political parties as well as business community,

One of the “contentious issues” raised by the opposition National Conference has been the extension of the 101st Amendment of the Constitution of India to J&K. The Amendment is meant to implement GST uniformly in all the states of India from July 1. The government has constituted an all-party committee and asked it to come up with a report on the implementation of the new tax regime.
President, Kashmir Chamber of Commerce and Industry, Mushtaq Ahmad Wani, said that alternate measures need to be taken by the Government from July 1 without wasting any time.
“We have made our stand clear that we won’t compromise on special status of state, but at the same time the implementation of GST across country will make us suffer and it would like an economic blockade for us, “he said adding that government is responsible for the current mess.
President, Jammu Chamber of Commerce and Industry, Rajesh Gupta said that there is no alternative with business community in the state after GST.
“We have to accept GST with a rider that it won’t affect our special status,” he said adding that “currently we are in a fix as supplies to JK would be taxed at more than 40 percent i.e. 28 percent under GST and 12 percent state taxes.”
JK Government’s spokesman and Minister for Public Works Department, Naeem Akhtar said that the state government stands for introduction of new tax regime.
“But we don’t want to push it down to people by force,” he said adding that “post implementation of GST across India, people in JK would suffer due to double taxation which is not good.”
He said that GST would not harm our specials status and “measures have already been taken by the government to protect it under new tax regime.”