State says new tax system is stabilising <\/p>\n
New Delhi, July 10: <\/p>\n
After implementing the Goods and Services Tax, Jammu and Kashmir is now also planning to abolish toll tax. <\/p>\n
It goes against the spirit of GST. Most traders have sought the abolition of toll tax. It also impacts consumers. We will try and take up it up in the next meeting of the Cabinet, said Ajay Nanda, Minister of State of Finance, Jammu and Kashmir. <\/p>\n
A toll tax is levied on vehicles as well as goods including consumables entering and leaving the State. <\/p>\n
This can be as low as 1 per loaf of bread, or as high as 4,000 per quintal of cigarettes. Similarly, the toll rates on vehicles also vary. The State earned over 3,000 crore from toll tax last fiscal, according to official data. <\/p>\n
Toll, mandi charges and fee on vehicle entry into States are not subsumed in the GST and will continue to be charged by local bodies or state governments. <\/p>\n
However, opposition parties as well as traders unions have sought that the toll be abolished as it will work as a tax on tax and will hike prices of goods coming into the State. <\/p>\n
The removal of toll tax would also mean smoother movement of goods across the State borders. <\/p>\n
GST was implemented in Jammu and Kashmir nearly a week after its July 1 launch across the rest of the country. <\/p>\n
On July 6, President Pranab Mukherjee gave his assent to the Constitution (Application to Jammu and Kashmir) Amendment Order, 2017. Completing its roll out, the President on July 8 promulgated two Ordinances for extension of Central and Integrated GST to the State. <\/p>\n
Nanda told BusinessLine that the businesses in the State are ready for GST and it has been fully implemented in the State. <\/p>\n
Taxpayers had been asked to enrol for GST when the registration windows were opened by GST Network. <\/p>\n
The new system will take some time to stabilise. We are monitoring the situation, he said, adding that supply of goods to the State is also now normalising. <\/p>\n
Nanda said that there are no differences in the structure of the GST in Jammu and Kashmir and rest of the States. <\/p>\n
It is the same tax. Some local exemptions will continue, he said. <\/p>\n
Since Jammu and Kashmir enjoys a special status under Article 370 of the Indian Constitution, it had to amend its own Constitution for implementing GST. <\/p>\n
The State has decided to allow taxpayers with an annual turnover of up to 50 lakh to opt for the composition scheme. <\/p>\n
(This article was published on July 10, 2017) <\/p>\n
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After GST launch, J&K plans to abolish toll tax to ease business - Hindu Business Line<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" State says new tax system is stabilising New Delhi, July 10: After implementing the Goods and Services Tax, Jammu and Kashmir is now also planning to abolish toll tax. It goes against the spirit of GST. Most traders have sought the abolition of toll tax Continue reading