Impact of GST on Jammu and Kashmir economy

GST, Goods and Services Tax is considered as a biggest tax reform generally in India and particularly in Jammu and Kashmir. GST has been introduced to replace multiple indirect taxes levied by State and Central Governments in order to simplify the indirect tax system. More than 150 countries have levied GST. Due to its various advantages over VAT and after various constraints, India have passed GST from 1^st April 2017 with constituent amendment 101th. Jammu and Kashmir having a special status in Indian constitution and only state in Indian constitution having its own constitution. Under 246A(1), the legislature of the state of Jammu and Kashmir shall have power to make laws with respect to goods and services tax levied by state. However, the order said, parliament shall have power to make laws with respect to goods and services tax levied by union.Therefore, GOI does not have right to implement the GST without the consultant of J&K state government. However by applying GST, the J&Kstate government can increase tax revenue 5151.17croe from 3571.12 crores.