Excelsior Correspondent
JAMMU, June 23: Caught in a catch-22 situation on implementation of Goods and Services Tax (GST) with Central Government wanting Jammu and Kashmir to implement the new tax regime that will be rolled out countrywide on July 1 but the Government facing heat from some Opposition parties and business organizations, who were opposed to its implementation, the State Government has called meeting of `Consultative Group’ (a conglomerate of all recognized political parties) tomorrow afternoon in Srinagar to discuss the issue again.
Finance Minister Dr Haseeb A Drabu has invited representatives of all political parties to the `Consultative Group’ meeting, which will be held at 4 pm at Nehru Guest House in Srinagar, the summer capital of the State.
Named as the ‘Consultative Group’, it would be headed by former Finance Minister and PDP Lok Sabha member Muzaffar Hussain Baig and comprise Finance Minister Dr Haseeb Drabu, Abdul Rahim Rather (National Conference), Nizam-ud-Din Bhat (PDP), Sunil Sethi (BJP), Aijaz Ahmad Khan (Congress), MY Tarigami (CPM), Hakim Mohammad Yasin (PDF), Engineer Rashid (Independent MLA), Pawan Gupta, MLA, Harshdev Singh (NPP) and Ghulam Hassan Mir (DPN).
Chief Minister Mehbooba Mufti, who has chaired All Party Meeting to evolve consensus on GST on June 13 at SKICC Srinagar, wouldn’t be part of the ‘Consultative Group’.
Significantly, an official letter circulated to the invitees by Finance Minister Dr Haseeb Drabu has called upon them to also share in writing the thoughts, suggestion, comments and alternatives on the GST besides airing their views at the meeting of the ‘Consultative Group’.
“With entire country moving into GST regime on July 1, it is imperative for Jammu and Kashmir that trade networks and transaction networks of the State with rest of the country are not disturbed, which will cause distress to the people of State,” the Finance Minister’s letter to the invitees said.
It added that Chief Minister Mehbooba Mufti has desired that a smaller ‘Consultative Group’ representation political spectrum of the State deliberate all issues relating to the implementation of GST in Jammu and Kashmir in a time bound manner.
Sources said the political parties and Independent MLAs were likely to stick to their oft-repeated positions on the GST especially which they had been raising during past few days after the Government decided to call Special Session of the Legislature for approval of the GST legislation but didn’t introduce the bill following opposition by some political parties and business and trade organizations.
Sources said ruling BJP was likely to reiterate its demand for issuance of Ordinance or passing GST by reviving the Assembly session, which has been adjourned sine die to implement GST on July 1 when entire country would switch over to ‘One Nation, One Tax’ regime, Opposition National Conference would oppose its implementation.
Ruling PDP wants implementation of the GST but with a consensus and by protecting fiscal autonomy of the State. The Congress is also not opposed to implementation of GST with certain safeguards in view of special position of the State. CPM veteran MY Tarigami has also supported safeguards on J&K’s special Constitutional provisions before switching over to the new tax regime while the Panthers Party is in favour of implementation of new tax structure.
The Government had called All Party Meeting on implementation of GST on June 13 but a consensus eluded. Thereafter, the Government had adjourned the Special Session of the Legislature called for passing the GST sine die on June 17 without even tabling the legislation.
Sources said the Government now wants to make fresh attempt to evolve consensus on GST through ‘Consultative Group’ for implementation of new tax regime as otherwise, there could be chaos in the State from July 1 when entire country would have one tax structure and Jammu and Kashmir would be the lone State to have another tax regime.
Union Finance Minister Arun Jaitley had recently cautioned that both traders and consumers in Jammu and Kashmir would suffer due to non-implementation of the GST as they would be deprived of the benefits under the tax regime. Similarly, the State Government would also lose certain hefty funds.
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