CGST, IGST in Jammu and Kashmir as Lok Sabha passed two bills

Government of India introduced and implemented GST or Goods and Services Tax in India on 1 July 2017. As a result from July 1 almost all states in India had GST in place of different taxes. However GST did not apply in Jammu and Kashmir as Jammu and Kashmir has special status. Though it took some time for GST to be made mandatory in J & K still after passing of two bills in Lok Sabha now GST tax will be applicable in this state.

Lok Sabha passes bill on GST

It was on Wednesday that Lok Sabha or House of People passed these two bills related to Goods and Services Tax. Besides Lok Sabha or the Lower House extended CGST and IGST to J & K with these two bills.

Even Finance Minister of India Arun Jaitley said that Integrated Goods and Service Tax and Central Goods and Services Tax would bring economic integration of state. Thus it will be part of the country in terms of taxes as well.

Also read how to calculate Input Tax Credit under GST.

CGST, IGST beneficial to traders

Finance Minister Jaitley also added that implementation of CGST and IGST in Jammu and Kashmir is beneficial to all traders and consumers. So no one will be in loss after introduction of IGST and CGST in state of Jammu and Kashmir. As a result both traders and consumers have many advantages because of tax changes in India.

Central Goods and Service Tax and Integrated Goods and Service Tax help people to develop their state. And then people will not go to other states to buy any product. It is so because prices on products will be more if GST tax does not apply.

Another reason for high prices on products is that traders do not have Input Credit and it leads to rise in prices. On other hand Jammu and Kashmir State is said to be consumer state whereas GST is destination based tax. And if both come together then it would mean that there is increase in revenues for this state.

Extension of GST tax in Jammu and Kashmir

Furthermore CGST Bill (Extension to Jammu and Kashmir) 2017 will provide levy of GST on goods and services in state. While IGST Bill (Extension to Jammu and Kashmir) is to levy tax on inter state movement of goods. Therefore both taxes have different rules to play.

We can also say that GST is now implemented throughout India because of two bills on Goods and Service Tax that Lok Sabha passed on 2 August 2017. In addition idea of last date for filing Income Tax Returns and where to file it will be useful.

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