On 1st July, 2017, one of India's most prestigious tax reform Goods and Services Tax (GST) was rolled out in India. GST was welcomed with a starry midnight gala event on 30th June, at a special session of Parliament held at Central Hall. The whole event that night was a treat to the eyes of all those who were glued to their TV's. The roll out happened after the gong was ranged by the President & Prime Minister of India. I am sure all those who were watching this event will keep the sound of this gong in their minds for years to come. Interestingly, Bhartiya Janta Party (BJP) & Congress party both are claiming that GST was their brainchild and this fact nowadays is even part of an undying debate. However, if we go beyond this debate then we can notice that BJP in one way or another managed to keep the GST issue hanging for many years. For me BJP appears politically very right in doing so, as I believe they had judged in advance the political mileage GST could give to them. Though politically they were very correct but morally they were not. But who cares about morals in Indian politics, as here morals are left far behind & low when something gets politicized. Hence, I think that we all should forget this fact that BJP kept the GST issue hanging and instead should keep a check as to how GST contributes to the nation's growth.
Finally, after the roll out of GST across India the BJP is in a ‘win-win’ situation. But I write it with regret that, in J&K they weren’t able to convert GST as their political achievement. Because of Article 370 of the Indian Constitution, it was required that GST got the concurrence of the J&K state government and approval of the President before being extended to Jammu and Kashmir. For this efforts were required at the legislative level in the state as it was an issue which touched Article 370. Therefore, the PDP-BJP government called two all party meetings in order to evolve consensus over the GST issue but these meetings failed. Even a special session of the J&K assembly was called but nothing came out and the assembly was adjourned without any consensus. This all was witnessed mainly because of the perception that was floating in Jammu and Kashmir, especially Kashmir, that the GST will impact the special status and fiscal autonomy of the state. BJP kept convincing PDP that GST adopted across the country should be extended in the state. But PDP wanted the state to retain powers to make laws with respect to imposition of any tax in J&K provided under Section 5 of the J&K constitution. PDP knew that, this if not done could harm them politically in Kashmir. These all events which took place in J&K before roll out of GST turned this economic reform to appear as if it was a political reform. While efforts were still being made by the PDP-BJP alliance, GST came into application across India and J&K was left behind. This delay therefore created some nervousness among traders and industrialists in the state & gave even some of them a reminder of the chaos during demonetization days.
That night in J&K all those who were watching that starry midnight gala event were quite anxious as no one was sure as to what would happen from tomorrow in state. A lot of negative messages have gone out after the failure of PDP-BJP alliance to get GST in J&K that night. Particularly traders in Jammu were totally confused and started assuming that the government had succumbed to pressure from traders in the valley. Moreover, adding to their confusion was how smoothly BJP on central level implemented GST whereas BJP in state was virtually helpless. They were more upset with BJP as they have emotional connection with the BJP in Jammu & never expected such treatment at their hands. Immediately, there was complete economic chaos in the state and pictures of the empty Lakhnpur toll plaza started doing rounds in the media. A week later, GST was rolled out in J&K as per the wishes of PDP by the central government by safeguarding the special position of J&K under Article 370. This surprising move of the central government over GST in J&K made its first impact when the state government in J&K decided to retain imposition of toll tax at Lakhnpur. This step has forced the traders and industrialists in Jammu to protest against the government because of double taxation even when GST promised “One Nation One Tax”. Such unfolding of events in the state has become a major embarrassment for state BJP especially when Chief Minister Mehbooba Mufti in her address in Legislative Council said that BJP prior to GST has kept the promise of safeguarding Article 370. And this all currently appears to show that there are internal differences within the PDP-BJP over GST. I feel that the state government should take steps to integrate the minds of people in J&K as GST is giving out signals of dual policy adopted by the central government.
