"But it will settle down and the country will benefit from the new indirect tax regime", Jaitley said at an event.
Even the All Party Consultative Group constituted by the government eluded consensus as most of the parties demanded Jammu and Kashmir specific safeguards before implementing GST in the state. "If the government fails to change GST slab, traders will go on indefinite strike", the president of Udaipur Marble Association, Tejinder Singh, said. Terming it a historical moment he said after GST it would be easy to do any business without bothering about the series of taxes.
Marathon discussion on the GST, which will be rolled out in the rest of the country from Mid-night, held here yesterday could not make any headway as opposition National Conference (NC), Congress and Communist Party of India (M) strongly opposed it saying implementation of GST in its current form would have direct impact on the financial and political independence of the state, enjoying under Article 370.
But the government has maintained that GST implementation will not erode the special status of the state.
The ramification could be more pronounced as traders will not be able to avail input tax credit for supplies of taxable goods and services from other states to J&K. "Every Congress Chief Minister supported the GST". "The strike will continue till June 30 and future course of action will be decided after GST Council meeting, which is scheduled on June 30", Federation of Rajasthan Trade and Industry President Suresh Agarwal told.
Unlike other states, which were required to pass only State GST (SGST) Act in their respective assemblies, J&K needs to enforce both Central GST (CGST) and SGST Act due to the special status for the state under Article 370 of the Constitution.
According to Rather, the state is constitutionally empowered to have its own law on GST for collection of taxes and their sharing with the Center.
Mukherjee had piloted the first Constitutional Amendment Bill to bring in GST in 2011 when he was finance minister with the previous UPA government.
"If we talk of bringing a separate law, the Centre will have to amend two chapters in the constitution to delegate powers of taxation to Jammu and Kashmir". Besides, it will also entail amending Section 5 of J&K Constitution which can't be done.