J&K Assembly Ratifies Recent Amendments to GST Act

J&K Assembly Ratifies Recent Amendments to GST Act

Issue: To formally incorporate the decisions and structural changes approved by the Goods and Services Tax (GST) Council into the state’s local legislation, the Jammu and Kashmir Goods and Services Tax Act, 2017, required ratification by the state assembly.

Facts:

• The GST Council recently passed a series of amendments, including those related to rate rationalization (GST 2.0) and procedural simplifications.
• Chief Minister Omar Abdullah moved the bill to amend the Jammu and Kashmir Goods and Services Tax Act, 2017, in the assembly for ratification.
• During the proceedings, a BJP MLA attempted to move amendments to the bill but was turned down by the Speaker.
• The Chief Minister clarified that GST is a federal act, and the assembly’s role is to ratify the changes approved by the GST Council, not to make unilateral amendments to the core federal structure.

Decision:

The Jammu and Kashmir Assembly ratified the amendments to the GST Act through a voice vote, formally adopting the changes approved by the GST Council into the state law.

Key TakeDowns:

• Federal Mandate: The proceedings underscore the federal nature of the GST Act, where state assemblies must ratify changes approved by the GST Council to maintain uniformity across the country. * Implementation of GST 2.0: This ratification ensures that the recent major GST reforms, including rate cuts and procedural changes, are officially implemented within Jammu and Kashmir.
• Fiscal Concern: The CM previously noted that the GST rate revision is expected to reduce the tax collection of J&K by up to ₹1,000 crore this fiscal year.
• Procedural Limitation: The Speaker’s ruling confirmed that the assembly’s power is limited to ratification of the integrated central-state act, and not to introducing state-specific amendments at that stage.