SRINAGAR: Jammu & Kashmir may be the first state in the country to bring real estatewithin the ambit of goods and services tax (GST) when it enacts laws to integrate its indirect tax regime with other states, state finance minister Haseeb Drabu indicated. While the Centre and the states had amended the Constitution to move to GST, J&K will have to enact its own laws as it has a special dispensation under the Indian Constitution.
Drabu said he would move the required legislation in J&K assembly to be part of GST and ensure the benefits accrue to the state. The shift is expected to help the state garner around Rs 2,000 crore-worth additional resources to add to its current kitty of around Rs 11,000 crore and expand the tax base by close to 15%.
Alcohol, petroleum and real estate are three items on which GST will not be levied.
Drabu said his government proposed to enact laws that would allow for levy of integrated GST, central GST and state GST amid indications that audit powers may not be split between the Centre and the state in the same way as it is done in the rest of the country.