Addressing a Press conference Yasin Khan, president of Kashmir Traders and Manufacturers' Federation said the traders were not against paying taxes but they resented the implementation of GST that would infringe the special status of the J&K State.
Brij Kishore Agrawal, the chairman of the Sangharsh Samiti said that the country would have to face major setbacks if the Finance Minister Arun Jaitley remained adamant on implementing GST in its present form.
The Centre has urged Jammu and Kashmir to implement the goods and services tax from July 1 to ensure that consumers and industry in the State are not put at a disadvantage.
Drabu explained the "benefits" of the new tax regime for which all the states except Jammu Kashmir have given nod and would be applied from July 1.
Meanwhile, in the absence of GST, there is no possibility of any trade in taxable goods in Jammu and Kashmir.
On the other hand, keeping the tax incidence under the new regime close to the current levels could encourage several small and unorganised players to move to an organised reporting structure, widening the tax net and bringing additional revenue for the government. Agarwal went to say that the SP was opposed to the GST, and would not support it.
Drabu said the state government has reached out to the opposition parties of the state and sent them all the relevant documents. "Products that are consumed by poor must be taxed low while luxury products can be taxed higher", he said.
The GST Bill was originally piloted by President Mukherjee when he was finance minister in the Congress-led UPA regime. "We will not be able to export nor will be able to import." he said. The PDP-BJP coalition insists that the GST would not erode the special status and fiscal autonomy of the State. He said all concerns will be safeguarded while implementing the GST.
An influential group of citizens from Kashmir termed the government proposal to extend 101st Constitutional Amendment for the introduction of GST in the state a "lethal assault" on its autonomy.
"We will take a final call", Finance Minister said while announcing scheduled all party meet. Besides, it will also entail amending Section 5 of J&K Constitution which can't be done.
GST is expected to bring about a uniform system of indirect taxation and will replace various taxes levied by the central and state governments as well as local authorities. "Under the new tax regime, the special position and Article 370 will not be eroded".