Rather for removing trust deficit between States-Center
Odisha, (Bhuwnaswar),January 29 (Scoop News) – Describing the meeting of Empowered Committee (EC) of State Finance Ministers on proposed GST held at Odihsa, Bhuwnaswar as an important event to finalize the road map with regard to GST regime, aimed at to usher in economic growth and development of the Country, the J&K Minister for Finance, Abdul Rahim Rather has sought adequate safeguard to the constitutionally guaranteed special status of Jammu and Kashmir before firming up its recommendations for constitutional (115th amendment) Bill 2011, which is prerequisite to pave way for the switch over to this latest Tax reforms all over the India.
Speaking at the crucial meeting of EC of State Finance Ministers, Rather conveyed State’s main concern on the proposed amendment Bill which needs to be addressed adequately, before implementation of the GST in the State, adding that the proposed dual integrated model of GST ‘Dual Control’ both by States and Center is perceived as an impediment in the implementation of GST and it is felt this is not a dealer friendly and may not be administratively an efficient tool of recovering the taxes. Rather said though the State of Jammu and Kashmir has not much of claim over the CST compensation but it is and has remained irritant between the States and Union of India. Now that the committee on CST compensation has made certain recommendations, as such, I would request that necessary steps be taken to implement these recommendations. This will be a step forward to remove trust deficit between States and Union of India, and will also facilitate introduction of Goods and Services Tax.
Rather said that, with the implementation of the Goods and Services Tax regime, the position of Jammu and Kashmir State would be entirely different as compared to the other States of the Union. All other States would be surrendering the exclusive authority to tax goods and, in turn, get the additional authority to tax the hither to out of bound “service sector”. On the contrary, the State of Jammu and Kashmir, being already competent to tax goods as well as services, unlike other States, would not get any additional authority except a share from the Central divisible pool.
Rather said, as a matter of fact the division of powers between the Union of India and the State of Jammu and Kashmir is not at the same footing as it is in respect of other States of the Union. The State of Jammu and Kashmir enjoys a special status under the Constitution of India and its Constitutional relationship with the Union of India is governed by Article 370 of the Constitution of India as amended vide Constitution (Application to Jammu and Kashmir) Orders, promulgated from to time by the President of India.
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Tags: JK , Finance Minister , AR Rather , States-Center
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