Commodity prices will not increase with the new tax regime, Commerce Minister Nirmala Sitharaman said.
Arun Jaitley Urges Jammu and Kashmir to Eliminate GST Status Law for Nationwide Launch on July 1
Union Finance Minister Arun Jaitley on Tuesday urged the Jammu and Kashmir government, Mufti led by Mehbooba, to eliminate the State Property and Services Act prior to the enactment of the July 1 national law.
Jammu and Kashmir are the only ones that have not yet adopted the law. Jaitley said the failure of the application would put companies at a disadvantage and have a “negative impact” on the economy, the Hindu said.
Meanwhile, the Minister of Commerce and Industries, Nirmala Sitharaman, refuted the concern about rising commodity prices under the new regime. “There is no different explanation for the public and another for traders,” Sitharaman said. “It’s all the same. The price of basic necessities is not going to increase.”
In a letter to the Chief Minister, Jaitley would have suggested that the state uses its powers for a special statute under section 370 to give its approval without the authorization of the Assembly, the Times of India reported. The Popular Democratic Party party – the Bharatiya Janata Party government plans to end the stagnation in the Assembly before the nationwide launch, unidentified officials said.
The state will be a meeting of all parties to discuss the issue after a special session of the House on June 17, did not vote.
Implications for the state
The Finance Minister has warned the state government that the exclusion of the tax system would translate into higher prices of goods in the state, as well as an increase in taxes on goods leaving the state.
Jaitley said entrepreneurs would not be able to benefit from the credit option available under the new tax regime. “The GST is a tax based on fate … if the state of Jammu and Kashmir do not join the GST on July 1, dealers do not take into account the integrated GST in all purchases,” said Jaitley in his letter To the Mufti.
The Center began to accept registration applications from companies that still have to register with the Tax Network products and services.
Jaitley had said that the government had recorded nearly 65 lakh taxpayers on the network, The Hindu.
Once in the network, companies can use the common portal to file tax returns and pay taxes.
The Center has also delayed the launch of a role in the new tax regime that would make it compulsory for e-commerce players to deduct tax on payments made to suppliers.
The government led by the BJP said that small businesses using e-commerce platforms should not enroll in the network immediately.
The delay gives e-commerce platforms and suppliers more time to meet the requirements of the new law.
The Center has dismissed the claims of the Association of Indian Chambers of Commerce and the Ministry of Civil Aviation to postpone the implementation of the GST deployment.