The nation is inching closer to launch its most historic Goods and Services Tax at the midnight of Jun 30. All the state governments except Jammu and Kashmir have passed the GST bills in their respective assemblies. Jammu and Kashmir enjoys special autonomous status under article 370 that restrict the central government's legislation applicability to only three areas in the state - defence, external affairs and communication.
In this situation, the most obvious questions one faces are:
What will happen to those from Jammu and Kashmir and how will they be a part of new taxation system?
GST Network chairman Navin Kumar spoke to Business Today and said: "The states don't have to do anything at this point. Their role will only come after returns have been filed and they start assessment. At this point, the only thing they need to do is look at the registration applications and say 'yes' or 'no'. The question is when there is no law, what happens to people who apply from J&K. We are in a fix, what to do? Shall we block their application? But there are two parts to GST-CGST and SGST. CGST law is already there. So what we are thinking is that for those applications we will generate a provisional registration. I have already referred the matter to the government to provide a solution."
How will GST be implemented in Jammu and Kashmir?
Jammu and Kashmir will have to pass special laws to be able to implement the GST. The state Assembly will have to pass a legislation saying Central-GST (CGST) and Integrated-GST (IGST) bills are applicable to them. This approval by the state assembly will be in addition to the requirement of all states to approve the State-GST law. Once the Jammu and Kashmir Assembly passes the laws, the Central government will have to amend CGST and IGST laws and delete the phrases that they do not apply to the state. Deletion of the phrase will make the laws applicable to the state.
Are you a trader? This is what you need to do
If you are a trader or businessperson registered under existing taxation system you need to apply for provisional registration. The government will provide you a Goods and Services Tax Identification Number (GSTIN). This number will have 15 digits. GSTIN is somewhat similar to the existing Tax Identification Number (TIN).