Issues Disclosed: Why 7 States Does Not Want to Pass SGST?
As the deadline given by the government to implement the GST is only one month away, there are still 7 states who have not passed State GST bill. Apart from Jammu and Kashmir ruled by the BJP-PDP alliance in these states, states like West Bengal and Tamil Nadu also needs to pass a bill to implement GST in their states. As of now, 24 states and Union Territories have passed the GST Bill while the remaining states are Meghalaya, Punjab, Tamil Nadu, Kerala, Karnataka, Jammu and Kashmir and West Bengal which are still required to pass the State GST (SGST) bill.
Going by the ruling, all these states, except for Jammu and Kashmir are non-BJP while the Central Government is fully prepared to implement the Goods and Services Tax, covering 16 different taxes, from July 1. Coming to the soaring conditions of West Bengal, leader Mamata Banerjee, has demanded the central government to avoid deadline for implementing GST law.
Speaking on this issue, West Bengal’s Finance Minister Amit Mitra cleared that there are a lot of difficulties in implementing the GST from July 1 as we still do not have the necessary infrastructure to manage the new tax scheme. As of now, GST has been implemented in 200-300 companies of each state as an experiment. But many rules have been changed in May.
Coming to the Jammu Kashmir issues, it is being defied by the political leaders which are under pressure from local community to mould the policies accordingly while Meghalaya, Punjab kerala & Karnataka are stuck into the political menace as various issues regarding the feasibility and technological capabilities are still not developed to support the upcoming GST.
Now it is up to the Union Finance Minister to decide whether such a major reform should be implemented without any preparation. According to the rules, all the states will have to pass the state GST bill till September 15, 2017, and if in case the state does not pass the bill before the deadline, then the rights of levying taxes will be taken from the particular state.