Jammu and Kashmir will implement Goods and Services Tax along with the other states in the country proposed during the coming year, the state government has said. The state would also computerise its commercial taxes department within 15 days for the convenience of business community, the state finance minister Abdul Rahim Rather said on Tuesday evening.
He was speaking at a gathering of industrialists, trade and industry representatives, and senior officers of the Finance, Excise and Taxation Departments on the occasion of the release of 3rd edition of Book on “Value Added Tax (VAT) in Jammu and Kashmir”.
The minister said the liberalisation of economy had necessitated periodic review of tax regimes.
He assured the industry that larger interests of all stakeholders would be safeguarded during the introduction of new tax reforms.
Abdul Rahim Rather said that government always looked forward to a cordial relationship with trade and industry bodies.
Elaborating on the need for the new GST regime, the Minister said though VAT system was effectively implemented in the state for which Jammu and Kashmir got appreciation at national level, there were some short-comings in it .
This, he said, had necessitated further improvements in the sphere of indirect tax reforms.
“New GST regime would be a further significant improvement and next logical step towards a comprehensive indirect tax reform”, he said.
Rather said necessary constitutional amendments at national level were in the offing for the purpose.
He hoped that the new edition of VAT in Jammu and Kashmir would enormously help tax administrators, business community, tax practitioners and the consumers.
The finance minister said this would further improve the quality of tax dispensation and justice delivery.
It is felt that the roll out of Goods and Services Tax by 2011 is doubtful with the Centre being unable to secure a consensus among the states.
On computerisation of tax departments in the state, the minister said this will enable business community in e-filing of returns, e-payment and de-matting of statutory forms.
It would help minimise the interface of the dealers with the department which was causing unnecessary harassment to them, he said.
Computerization of records would solve maximum problems of the business community, he said.