J&K set to bring petrol, electricity, liquor under GST: report

J&K set to bring petrol, electricity, liquor under GST: report

Jammu and Kashmir (J&K) is set to bring petrol, electricity, liquor and real estate under the state goods and services tax (GST), a media report says.

A formal decision is likely to be part of the state’s budget for 2017-18, scheduled for presentation in the first week of January.

“Not only will the state’s decision revive the debate over extending the purview of GST to all sectors, including petroleum, alcohol and real estate, it may also serve as a template for other states,” Livemint reported.

Since these items are not part of the GST framework, the state will not have to share the revenues even while it avails of the efficiency associated with this piece of indirect tax reform.

A J&K government official said on condition of anonymity that a high-level panel has been set up to prescribe the modalities.

“Once implemented, businesses will be able to benefit from tax rebates which, at present, are not available to them. For example, businesses can offset part of their final tax liability against the state GST (SGST) paid on the electricity consumed or on purchase of real estate for business. It will offer a competitive edge for businesses operating from J&K, incentivizing new businesses in the state,” the report said.



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    By: KN Web Desk

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