Even though the State of Jammu & Kashmir is yet to roll out the reformative Goods and Services Tax (GST), confusion prevailed on ground zero amid speculation whether the alliance partners Bharatiya Janta Party (BJP) and Peoples Democratic Party (PDP) would be able to convince the Opposition parties on the floor of the State Assembly to switch over to ‘One Nation One Tax’ theme without wasting crucial time.
The ruling dispensation has convened special Session of the State legislature in Srinagar on July 4 to debate the GST Bill before adopting it.
Meanwhile, difference of opinion, between the trade bodies across two regions of the State is also making matters worse for the State Government at this crucial juncture.
The representatives of Chamber of commerce and Industry in Jammu region are keenly awaiting implementation of the GST regime in the State while their counterparts in Kashmir valley are opposed to the idea of adopting the GST Bill in its existing form.
The trade bodies in Kashmir are singing in chorus with mainstream Opposition leaders who have raked up the issue of diluting the autonomy of the State by directly adopting central law instead of drafting its own legislation.
On a day when Goods and Services Tax (GST) was rolled out across the country sans Jammu & Kashmir, a shutdown against the new tax regime’s implementation crippled normal life in Kashmir as traders shut their businesses and held protest demonstrations.
Kashmir Traders and Manufacturers Federation (KTMF) and Kashmir Economic Alliance had called for the valley-wide protests and shutdown. All shops and business establishment remained shut though public and private transport was seen plying normally on the roads.
In a bid to foil the traders protest in Kashmir capital Srinagar, authorities imposed restrictions in parts of old city. Announcements were made asking the people to stay indoors.
Hundreds of traders affiliated with different trade bodies assembled at city centre lal Chowk to express their anguish over government’s proposal to implement GST regime in Jammu and Kashmir. The traders staged a peaceful protest and waved banners and placards.
“The implementation of GST in Jammu & Kashmir will be a blow to the financial autonomy of the state. We warn Jammu & Kashmir Government particularly ruling PDP of dire consequences in case they implement this contentious act,” the traders said.
Eyewitnesses said that police swung into action and arrested dozens of trade leaders including Muhammad Yasin Khan, Farooq Ahmed Dar, Muhammad Sadiq Baqal, Zahoor Budshah, Ajaz Shahdar and others. A large contingent of local police and paramilitary troops were deployed in restive areas including Khanyar, Rainawari, Nowhatta and Safa Kadal areas while roads were bloked with barbed wire to stop protesters.
The State Government has decided to re-convene the assembly session on July 4 to deliberate on the possibility of implementation of the GST. The State Cabinet has already deiced to place a resolution before the Assembly favouring implementation of GST. The GST regime was not directly implemented in Jammu & Kashmir in the backdrop of its special constitutional position.
The state government has also constituted an All Party Consultative Group headed by former deputy chief minister and MP Muzaffar Hussain Beigh to explore possibilities of implementing GST in J&K with adequate constitutional safeguards. The opposition National Conference has said that implementation of GST in its form would erode the special status of J&K.
The traders from Kashmir Valley have been opposing the implementation of GST regime stating that it will have serious legal and political implications in the State.
Jammu based traders, industrialists associations have decided to shut down their business establishments, production units and have also stopped import/export of raw material and processed goods due to non implementation of GST regime in the State. They also organised protest demonstrations in Jammu on saturday demanding implementation of GST Bill at the earliest.
They apprehend more loses if the State Government failed to adopt the GST Bill during the special Session.
On ground zero the business houses, shopkeepers are yet to upgrade their systems in the absence of general awareness. President of the Chamber of commerce and Industry, Jammu Rakesh Gupta said, “we are hopeful that the state govt would be able to resolve the issue of adopting GST bill during the special session”. President, Confederation of Indian Industries (J&K Chapter) Rahul Sahay claimed in the absence of clarity over GST bill we have to close down our units. He said the units would face difficulties in procuring raw material and sell processed goods outside the state. This would lead to black marketing of goods and increase in prices of goods.