Existing State of J&K has been reorganized into Union territory of J&K and Union Territory of Ladakh w.e.f. 31-10-2019 vide Jammu and Kashmir Reorganisation (Removal of Difficulties) Order, 2019.

Applicable Statutes

The Jammu and Kashmir Goods and Services Tax Act, 2017 shall be applicable to the Union Territory of Jammu and Kashmir and the Union Territory Goods and Services Tax Act, 2017 shall be applicable to the Union Territory of Ladakh [Para 7 of Removal of Difficulty Order]

Tax Periods Redefined

Due to reorganization taking effect from 31st October 2019, tax period of October and November 2019 have also been bifurcated as under:

October 2019 1st October to 30th October 2019 (Instead of 1-10-19 to 31-10-19)
November 2019 31-10-2019 to 30-10-2019
Clarified by Notification 62/2019. But for such clarification return for one day i.e. for 31st Oct 2019 would have been segregated. Hence one day reduced from October and added to November

Manner of Tax Payment

Till 31st December 2019, irrespective of particulars of tax in the invoice/debit note/credit note/ e way bill, appropriate applicable taxes shall be paid as under:

Union Territory of J&K SGST (Because state tax has been continued)
Union Territory of Ladakh UTGST

New GSTIN for J&K and Ladakh

Those having place of business in J&K only need not apply new GSTIN because they continue to be governed by J&K SGST Act

Those having place of business in J&K as well as Ladakh where principal place of business was in Ladakh, need to apply new GSTIN both for Ladakh and J&K for following reasons

J&K Since there was no GSTIN available for J&K, hence GSTIN under J&K SGST law need to be applied
Ladakh Since old GSTIN was under J&K SGST hence new number under UTGST Act needs to be applied
Further old GSTIN of Ladakh shall be cancelled

Those having place of business in J&K as well as Ladakh where principal place of business was in J&K, need to apply GSTIN for Ladakh under UTGST Act

Those having place of business only in Ladakh and holding J&K GSTIN also need to apply GSTIN under UTGST

Illustration of a long shadow round web button with the Goods and Service Tax acronym GST

Transfer of ITC

ITC to be transferred to new registration in ratio of turnover by reversing ITC in 3B of of existing GSTIN in Table 4B.2 and taking credit in new GSTIN 3B in Table 4A.5. Jurisdictional tax officer of transferor and transferee state should should be informed about transfer of ITC along with copy of 3B and the amount of adjustment made with in one month from obtaining new registration

Balance in SGST Account on 31-10-2019 for those having principal place of business in Ladakh shall transfer balance to UTGST credit ledger. Transfer may be made through reduction in GSTR 3B Table 4B.2 of October 2019 and adding ITC to new GSTIN GSTR 3B Table 4A.5. Alternate mechanism may be transfer through ITC-02.

Principal Place Additional Place Registration ITC
J&K NIL No New registration No Transfer of ITC
J&K Ladakh Apply UT registration in Ladakh ITC to be transferred in ratio of turnover
Ladakh NIL Apply UT registration in Ladakh SGST to be transferred to UTGST
Ladakh J&K Apply new number in J&K and also new number in Ladakh ITC to be transferred in ratio of turnover.

Ladakh’s share of SGST to be ranked as UTGST

Impact on Inter state supply

Where interstate supplies between J&K and Ladakh are made from 31-10-19 till 31-12-2019, compulsory registration requirement shall not apply. Interstate supply of service up to 20 lacs is already exempt from registration vide Notification 10/2017-CT dated 13-10-2017

[Source: Notification 62/2019-CT dated 26-11-2019]

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