Srinagar: Reiterating that implementation of Goods and Services Tax in its current form has wider legal and political ramifications, lone CPI (M) MLA Mohammad Yousuf Tarigami suggested bringing a similar legislation or incorporating similar provisions in the state legislation in order to protect the constitutional position of Jammu and Kashmir. Mr Tarigami warned that Application of Constitutional Amendment 101 will not be reversible process which means once this Amendment is made applicable; there will be no chance of reversal of positions.
He said a number of central legislations have been made applicable in the state by enacting similar legislations or incorporating similar provisions in the state legislations. ‘This mode can be adopted by the state government in order to protect its constitutional position, as it may not require application of Constitutional Amendment and will siphon off the apprehensions in the minds of people that a bargain is being worked out by the state government. Consultation with legal experts at state as well as national level is required to make this actually happen in the state,’ Mr Tarigami said in a note submitted to GST Consultative Group meeting here.
‘There is a defined relationship in the Constitution of India regarding distribution of legislative, financial and other powers between the Union and the states, including the power to impose tax,’ he said. ‘By the Constitution (101 Amendment) Act, 2016, Parliament has amended provisions of the Constitution of India, so as to provide that Parliament as well the State Legislatures shall have power to make laws with respect to imposition of taxes on goods and services in the country. Parliament shall have the exclusive powers to make laws with respect to taxes on inter-state trade of goods and services in the country. This Amendment has given rise to a situation where the power to impose taxes on sale of goods has been surrendered by the states and the power to impose taxes on services and manufacture of goods has been surrendered by Parliament. ‘In fact, after this Amendment, both the Centre as well as the states have say in fixing the rate of taxes on goods and services,’ he said.
