A decision in this regard is likely be part of the state’s budget for 2017-18, which is planned for the first week of January, reports Mint.

Jammu and Kashmir is set to bring petrol, electricity, liquor and real estate under the ambit of the Goods and Services Tax (GST), making it the first Indian state to take this step, reports Mint.

A decision in this regard is likely be part of the state’s budget for 2017-18, which is planned for the first week of January.

The items – petrol, electricity, liquor and real estate – are currently not a part of the tax regime, and hence, J&K is not compelled to share the revenues.

The power to levy state taxes in J&K are not part of the Constitution of India’s 7th schedule. Instead, it is part of the J&K Constitution.

Sources told the paper that a high-level panel has been set up to prescribe the modalities.

Once GST is implemented, the related businesses will benefit from tax rebates.

Experts told Mint that the decision to replace value-added tax (VAT) on fuel, excise duty on liquor, duties on electricity and stamp duty on land with SGST will be beneficial for the industry. However, building the GST structure will be complicated.

The state’s panel will look into all implementation issues. For instance, India is currently following dual GST – CGST and SGST – dividing the taxes between the Centre and the states. If the tax rates are unequal, there can be difficulties in settling taxes on inter-state trade.

Last week, Finance Minister Arun Jaitley had said the GST Council would consider bringing real estate under the ambit of GST at its next meeting on November 9 in Guwahati.

Source: MoneyControl

 

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