Jammu and Kashmir Finance Minister Abdul Rahim Rather has said that the state's special constitutional status should be protected while implementing the Goods and Services Tax, a new regime that would subsume indirect taxes like excise, sales tax and VAT.
"Our position vis-a-vis other states is different in view of special status guaranteed to us by the Constitution under Article 370," the minister said while making a case for protecting the fiscal autonomy of state in the GST regime.
Rather said the state will implement the GST but its "special constitutional position" should not be diluted.
"As such we expect that our special Constitutional position will not be diluted. We urge the Empowered Committee that in doing so even if a special provision is needed for the purpose, the same should be considered in consultation with the Government of India," he added.
The Empowered Committee, which comprises state finance ministers, met at Goa for two days on Wednesday and Thursday to chalk out strategy for implementing the GST which has been hanging fire for long.
The GST will require constitutional amendments, as the Centre and the states will have to realign their powers for levying taxes.
The rollout of GST has already missed the deadline of April 1, 2010. The new deadline of April 1, 2011 is also likely to be missed and the Centre and the states are yet to arrive at a consensus on crucial issues.
