The resolution however made it clear that new tax reform will not erode the constitutional status of the state and there will safeguards to protect the fiscal autonomy of the state.
Yesterday when government moved a resolution in the house, it was clear that ruling PDP and BJP have arrived at a compromise formula.
"I will reiterate... that implementing GST module in Jammu and Kashmir will not and shall not and could interfere with the special status of Jammu and Kashmir," said BJP legislator R S Pathania who explained party's stand in the house.
The opposition however alleged that the resolution is a subterfuge and once the GST is implemented, Jammu and Kashmir will lose its fiscal autonomy. So far, the state has absolute authority to impose taxes. The opposition National Conference and Congress wants the government to pass a similar act in the state instead of implementing GST in its present form.
Residents of the state are also apprehensive GST in the state. At a cottage shop selling exquisite handwoven Kashmiri shawls in Srinagar, Tariq Ahmad said he is worried about their trade once GST is implemented. So far handcraft sector is tax free in the state because thousands financially disadvantaged artisans are associated with the trade.
"Our artisans earn 150-200 rupees per day. How he can give us input cost of GST? We can't get that input cost. If GST applies in this, the trade will go," said Tariq Ahmad.
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