Through a historic announcement in Rajya Sabha followed by Lok Sabha, Home Minister Amit Shah abolished Section 370 applicable to Jammu & Kashmir and revoked the special rights enjoyed by the state before.
Now, Jammu & Kashmir has become an integral part of India and all the laws applicable to the rest of the country will now be applicable to Jammu & Kashmir as well.
However, GST was already extended to Jammu & Kashmir a week after it was implemented in the rest of the country making “One Nation, One Tax” Regime a reality.
Right now, every entity, setting up the units in Jammu & Kashmir under the scheme announced by Central Government, becomes eligible for a refund of CGST and IGST for first 5 years.
Now since J&K and Ladakh have been separated and converted into two different union territories, there will be few amendments in the nature of transactions and implications of GST.
As per the legislation, J&K will have a legislature and assembly, while Ladakh will be constituted as a UT without an assembly.
What will change in GST law?
For the time being, as per the Jammu & Kashmir Reorganisation Legislature, GST will continue to be applicable in the entire region as SGST like before.
Once laws are set up, SGST will be applicable to J&K since it has a legislature. According to GST laws, if a UT has its own legislature, it will be considered a state for tax purposes. Whereas, UGST laws will be applicable to Ladakh region.
Those companies who have set up units in both Jammu & Kashmir and Ladakh will require separate GST registrations now. Also, when a company transfers goods from J&K to Ladakh, it will have to pay GST on such transfer.
How will SahiGST always help as a friend?
When the GST laws will be amended to incorporate the legal changes, SahiGST will be simultaneously updated, so you don’t miss out on following the revised rules.
Now since J&K has become an integral part of India, the business opportunities in the region will expand exponentially which will result in more compliances as well.
With SahiGST, you don’t have to worry a bit about meeting the GST obligations.
SahiSGT is an automatic choice for every business from low-scale to high-scale.
Our software integrates with your existing accounting and billing systems and fetches data internally so you don’t have to switch your day-to-day operations.
Since companies have to re-strategise their policies related to J&K and Ladakh now, numbers will play a crucial role. With SahiGST, reports are available to you at a single click. You can download customised reports based on clients, tax slabs, geographical regions and date range to strengthen your decision making.
Also, GST 2.0 is simple, easier but involves robust reconciliation requirements. Hence, our software is a go-to tool for CAs and tax consultants since there are several reconciliations available in it. System driven tracking of input tax credit helps you avail most of it.
Overall, “ease of doing business” will further expand since companies will be able to freely trade in all parts of India including J&K region. SahiGST, as your best companion, will always take the tax burden off your shoulders, so you can focus on doing business.
So, what are you waiting for? Ride on a smooth GST ride with SahiGST by visiting our website and starting a free trial.