Jaitley said the government has kept the items of daily usage under a lower tax bracket. "If the government fails to change GST slab, traders will go on indefinite strike", the president of Udaipur Marble Association, Tejinder Singh, said.
GST has clearly divided the business communities of Kashmir and Jammu.
The opposition, particularly National Conference (NC) and Congress besides Communist Party of India (M) are opposing the implementation of GST in its present form, alleging it will have far reaching negative impact on the financial and political autonomy of the state. The final event is likely to start at 11 pm on June 30 and will be on till half past midnight.
The official sources said that the PDP-BJP government had chose to go ahead with the GST following an appeal was made by Union Finance Minister, Arun Jaitley, who also warned that the State would only suffer in case it fails to implement the GST.
"The traders, manufacturers and restaurants with an annual turnover of Rs 20 lakh to Rs 75 lakh can opt for the composition scheme and pay tax at one per cent, two per cent and five per cent, respectively", the Finance Minister said at the Summit. "Every Congress Chief Minister supported the GST". The taxes to be integrated under GST include Central Excise Duty, Duties of Excise, Additional Duties of Excise, Additional Duties of Customs, Special Additional Duties of Customs, Service Tax, State VAT, Central Sales Tax, Luxury Tax, Entry Tax in lieu Octroi, Entertainment Tax, Taxes of Advertisement, Purchase Tax, Taxes on Lotteries, Betting and Gambling and State Cess. Drabu said GST is the superior version of Value-Added Tax and is beneficial for the consumers. It will become a huge political issue across the country.
While there was expectation that J&K could bring in an ordinance on Friday, on the lines of what West Bengal and Kerala had done earlier, J&K Finance Minister Haseeb Drabu, when contacted by The Indian Express, said they were trying to bring in a modified extension of the constitutional amendment, hopefully by July 5. He added, "Besides, it will entail amending Section 5 of J&K Constitution which can't be done. And instead the government should find answers in the laws enacted by the state legislature", said leftist leader M.Y. Tarigami. We are in favour of it but we are concerned about how it is implemented in J&K.