Implementation of GST in limbo as Kashmir fears unrest

The PDP-BJP coalition government in Jammu and Kashmir has failed to evolve a consensus on introducing the Goods and Services Tax (GST) in the state, with mainstream politicians, traders and separatists resisting its implementation. Trade bodies and civil society members in Kashmir have threatened a disobedience movement if the government tries to implement GST. On Saturday, traders in Kashmir called for a day’s strike to protest the GST, while traders in Jammu took out a march demanding GST and gheraoed Assembly Speaker Kavinder Gupta.

The focus is now on the state’s relationship with New Delhi under Article 370, and on the gaping divide between Kashmir and Jammu-Ladakh. Both Jammu and Ladakh want GST. Such is the demand that J&K Pradesh Congress Committee was forced to issue a statement on Friday, under pressure from party workers in Jammu and Ladakh, that it favoured GST implementation in the whole state. In Kashmir, opposition to GST is coming from the Abdullahs’ mainstream National Conference as well. In the second All Party Consultative Meeting to discuss GST, the NC had said that it would not allow GST without safeguards to J&K’s internal autonomy. 

An intelligence report to Chief Minister Mehbooba Mufti has said that there will be major trouble in the valley if GST is implemented. The spectre of street protests looms large. Recently, the police arrested three leaders of the hardline Hurriyat led by Syed Ali Shah Geelani for trying to whip up passions. Sources privy to the intelligence report say that the police is apprehensive that even the NC will participate in these protests. The report has talked about two prominent NC leaders allegedly holding clandestine meetings with some miscreants in the recent past.

The PDP is under immense pressure from BJP to implement GST. The chairman of the Consultative Committee and MP from Baramulla, Muzaffar Hussain Beigh tried to convince the political parties that J&K could not say no to GST. “If we bring a separate law, the Centre will have to amend two chapters in the Constitution to delegate powers of taxation to J&K. It will become a huge issue across the country for BJP,” Muzaffar Beigh said in an all party meeting. 

State Finance Minister Haseeb Drabu said that the government will ensure safeguards to protect J&K’s internal autonomy. He said that implementing GST was imperative as it would replace 16 taxes currently being levied by the Central and J&K governments. He talked about businesses being crippled as there would be no trade without GST in future. On Saturday, Drabu was quoted as saying that the state may implement GST from 6 July.