Centre downplays GST differences with state

Arteev Sharma

Tribune News Service

Jammu, December 3

The Union Finance Ministry today sought to downplay its differences with J&K and Tamil Naidu governments over Goods and Services Tax (GST) implementation, saying the “consensus” will be evolved over contentious issues in the existing GST Bill during the next GST Council meeting.

“It is not only J&K opposing it (GST in present form) but the Tamil Naidu Government, too, has expressed certain reservations. We will definitely make a consensus and that is our resolve,” Union Minister of State for Finance and Corporate Affairs Arjun Ram Meghwal said while addressing a programme on “Industrialisation for Employment Generation under GST Regime” here.

The event was organised by Laghu Udyog Bharti, J&K, in coordination with the Federation of Industries (FOI), Jammu.

To a query about the state government’s plea of special status enshrined under Article 370, the Union minister said, “Article 370 is not a hurdle. It is a different story, but the GST will be beneficial to J&K also. I think the J&K Government will also pass the GST.”

Pertinently, the J&K had made it clear that the state government would come out with a separate proposal on how to participate in the GST framework “without compromising its constitutional position” on taxing services.

It had argued that the GST Council would become more powerful than state legislatures once the new tax takes off. The state had made a case before the empowered committee of state Finance Ministers that “J&K’s special taxation powers have to be protected while rolling out GST”.

In a major announcement, the Union minister also announced that the Centre would create a system under which the funds generated under the Corporate Social Responsibility (CSR) scheme from all PSUs, big companies and factories operating in J&K would be spent in the state only.

“Till now, the PSUs and big companies operating in J&K are spending the amount of the CSR scheme in the areas where either their corporate offices are located or from where they get the proposal. We will now create a system under which two per cent of profit of all PSUs and companies operating in J&K would be spent in J&K only. The companies, which are not contributing to the CSR, will be served notices,” Meghwal said.

The Union minister also announced that the incentives being given to the state for industrial growth would be hiked from current amount of Rs 40 crore per annum during the next financial year.

“Given the large population, geographical location and terrorism problem, the incentives being given for industrial growth to the state are not enough and these need to be enhanced,” Meghwal said.

He also hinted that Jammu would get “something special” in the next rail budget, which has been clubbed with General Budget.

Earlier, J&K Minister for Industries Chander Prakash Ganga demanded Rs 500-crore incentives per annum for industrial growth and employment generation in J&K.