Assembly, Council pass GST amid opposition boycott, walkout

*New tax regime rolled out in J&K
Fayaz Bukhari
Srinagar, July 7:  Both Houses of the Legislature today passed Goods and Services Tax (GST) bill paving way for the implementation of the new tax regime that was implemented in rest of the country from July 1.
Both the Houses today passed the Jammu and Kashmir Goods and Services Tax ( JKGST) Bill 2017 with a voice vote amid opposition National Conference (NC) boycotting the Assembly session and Congress and others walking out in protest.
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The Bill was moved by the Finance Minister Dr Haseeb Drabu in both the Houses during separate sessions in the morning and afternoon.
While moving the Bill in the Houses, Drabu gave detailed account of the legislation and informed that the Bill has received the assent of the President of India. He informed that all necessary safeguards to Section-5 of the J&K State Constitution and those enshrined in Article-370 of the Indian Constitution have been incorporated in the Presidential order regarding which apprehensions were expressed by some Members in the legislature during the discussion on this important legislation.
Before moving the bill for consideration and passing by the State Legislature, Finance Minister read out the contents of the Presidential Order pertaining to the special status of the State and its exclusive taxation powers.
“Although there is no tradition of tabling a Presidential Order in the House, we are starting a new tradition in the democracy of the State by tabling this Presidential Order in the House,” he said and added that the Proviso-3 of the Presidential Order clearly states that; “Notwithstanding anything contained in this order, the powers of the State of Jammu and Kashmir as per Section-5 of the Constitution of Jammu and Kashmir, shall remain intact”, he said.
“The Legislature of the State of Jammu and Kashmir shall have the powers to make laws with respect to Goods and Services Tax levied by the State,” Drabu said while reading from the excerpts of the Presidential order pertaining to the special status and exclusive taxation powers of the State.
“The Legislature of the State of Jammu and Kashmir shall have exclusive powers to make laws in respect of imposition of any taxes enabled by Section 5 of the Constitution of Jammu and Kashmir”, he added.
“The incorporation of Constitutional safeguards into the Presidential Order upholds this Govt’s our resolve to protect the special status of Jammu and Kashmir,” Drabu said.
“The Opposition had made a huge issue out of a non-issue by claiming that the fiscal autonomy of J&K will be compromised and the special status of the State under Indian Constitution will be eroded. The Presidential Order has respected the sanctity of the J&K Legislature by safeguarding our Constitutional, Economic and Administrative powers,” he said.
While replying to a query by independent legislator, Pawan Gupta, regarding the abolition of Toll Tax and entry tax at Lakhanpur, Finance Minister said that there will be no entry tax on goods, but the issue of Toll Tax is a subject matter of the State Government and will be decided by the State Cabinet in the due course of time.
The Finance Minister said that the financial and administrative safeguards as promised by the Government in the GST regime would come in due course of time.
The Finance Minister conveyed his special gratitude to President, Pranab Mukherjee, Prime Minister, Narenda Modi, Union Finance Minister, Arun Jaitley, Union Home Minister, Rajnath Singh, Union Law Minister, Ravi Shanker Prasad, the Speaker, J&K Legislative Assembly, Kavinder Gupta, Chief Minister, Mehbooba Mufti, Deputy Chief Minister Dr Nirmal Singh, State Council of Ministers and all Members of the House for their whole-hearted support and cooperation in bringing this important legislation in the State.
Drabu said the GST regime will roll out in the state at midnight on Friday, making Jammu and Kashmir the last state to join the new tax regime.
Pertinently, this was the first time in the history of the Jammu and Kashmir Assembly that a resolution, seeking a Presidential order on a Constitutional amendment, was discussed and passed.
Opposition Congress legislators walked out from Legislative Council (LC) and termed the special session on Goods and Services Tax (GST) implementation in the State a ‘fixed match’ between ruling People’s Democratic Party and Bhartiya Janata Party (BJP).
As soon as the proceedings began today in the afternoon, Finance Minister Dr Haseeb Drabu started briefing the members about the Presidential order on GST bill and said no amendment was ever discussed in the Assembly or Council so far unlike GST. After his address was over, Congress MLC Ghulam Nabi Monga said the special session of the House “was wasted in hurling abuses and Opposition was not given any chance to speak on the GST resolution”.
As Monga was speaking, the LC Chairman Haji Anayat Ali interrupted him and said that the Opposition was given “fair chance but you (Opposition) wasted it in sloganeering”. Monga said that they condemned the unruly behavior and hurling of abuses by some legislators but the latter didn’t apologize as sought by them.
Monga’s speech was then disrupted by BJP legislator Ramesh Arora and he said “there is no question of apologizing to the Opposition”. “You (BJP) spoke of turning this (J&K) into graveyard,” Monga said. Monga while quoting Union Finance Minister Arun Jaitley as having said that “GST would make J&K’s integration with country strong” and asked the State Government whether they wanted GST implementation for integration of J&K.
Monga said that they (Opposition including Congress) “don’t want to be involved in the sin of integration (of J&K with India” which however enraged the BJP and PDP legislators and they accused Congress of double speak. Amid uproar, Monga said that they were not against GST implementation but “the special session was a fixed match between PDP-BJP”.
Another Congress legislator Naresh Gupta also lashed out at ruling coalition and amid verbal between treasury and opposition benches, the Congress staged the walkout.
Pertinently, the National Conference legislators did not attend the proceedings of the Upper House today as they had already announced the boycott.
Soon after the passage of the two Bills, Speaker, Legislative Assembly, Kavinder Gupta, adjourned the House sine-die. Chairman, Legislative Council, Haji Anayat Ali, also adjourned the House sine-die after passage of the GST and JK Civic laws Amendment Bill.