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Jammu and Kashmir Implements Goods and Services Tax

On July 7, 2017, the President approved the implementation of the Goods and Services Tax (GST) in Jammu and Kashmir. This followed a resolution passed by the state assembly, allowing the new tax regime to be applied due to J&K's unique constitutional status which permits it to enact its own tax legislation. Unlike other Indian states which had already adopted GST, Jammu and Kashmir was the final region to implement this indirect tax law.

📖 1 min read read🏷️ GST Implementation

On July 7, 2017, the President of India officially sanctioned an order enabling the Goods and Services Tax (GST) to be enforced within the state of Jammu and Kashmir. The state government of J&K had previously passed a resolution in its assembly on Wednesday, clearing the draft order for presidential approval. Given Jammu and Kashmir's special constitutional standing, the state possesses the authority to legislate its own tax regulations. While all other Indian states had already adopted the GST laws, J&K remained the sole state where this new tax framework had not yet been introduced. This development was initially reported by First Post.

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Frequently Asked Questions

What is GST in India?
GST, or Goods and Services Tax, is an indirect tax levied on the supply of goods and services in India, replacing multiple cascading taxes. It aims to simplify the tax structure and create a unified national market.
Which goods and services are exempt from GST?
Certain essential goods and services, such as unbranded food grains, fresh vegetables, specific healthcare services, and educational services, are typically exempt from GST to ensure affordability and access.
How does Input Tax Credit (ITC) work under GST?
Input Tax Credit allows businesses to claim credit for the GST paid on purchases of goods and services used for their business activities. This credit can then be set off against the GST collected on sales, avoiding a cascading tax effect.
What are the different types of GST in India?
There are four main types of GST: CGST (Central GST) and SGST (State GST) for intra-state supplies, IGST (Integrated GST) for inter-state supplies and imports, and UTGST (Union Territory GST) for supplies in Union Territories.
Who is required to register for GST?
Businesses exceeding a certain annual turnover threshold are generally required to register for GST. This threshold varies depending on the state and the nature of the business (goods or services). Voluntary registration is also possible for businesses below the threshold.