The Jammu and Kashmir administration rolls out the second phase of Goods and Services Tax (GST 2.0) reforms, simplifying the tax structure and lowering prices on nearly 99 per cent of essential goods as part of nationwide rationalisation efforts.
Effective from 22 September, the Union Territory has moved to a two-rate GST structure of 5 per cent and 18 per cent, replacing the earlier four-tier slabs of 5, 12, 18 and 28 per cent. Officials said the change is expected to reduce prices for nearly 99 per cent of essential goods.
An official spokesperson described the new regime as “the next generation of GST reforms,” designed to ensure transparency, compliance and tangible benefits for consumers.
To ensure smooth transition and implementation, the Finance Department has issued detailed standard operating procedures for departments, including State Taxes, Legal Metrology, Health and Medical Education, and Industries and Commerce. These guidelines will steer enforcement, monitoring and consumer outreach activities.
According to an order issued by Principal Secretary (Finance) Santosh D Vaidya, divisional and district-level enforcement teams will intensify market surveillance to prevent overpricing and ensure that tax benefits are correctly reflected in retail prices.
The government has also introduced a seven-step “Consumer Benefit Protocol”, which outlines a comprehensive framework for implementation. This includes policy communication through advisories to trade and industry bodies to ensure clarity on revised rates, establishment of GST Suvidha Kendras and district helplines for citizen support, and awareness campaigns via webinars, brochures, radio and social media. Monitoring and documentation will involve collecting invoices and voluntary price declarations to verify that lower tax rates translate into reduced retail prices. Consumer feedback mechanisms will enable reporting of non-compliance or overpricing, while inter-departmental inspections and coordinated checks will enforce compliance. Regular assessment of implementation outcomes will conclude the protocol.
Legal Metrology officers have begun strict monitoring of maximum retail price revisions and labelling practices. The Health and Medical Education Department is conducting inspections to ensure that tax reductions on medicines and healthcare services are passed on to patients. Meanwhile, the Industries and Commerce Department has launched a consumer complaint portal to facilitate grievance reporting and strengthen accountability.
The reforms form part of a broader effort to align Jammu and Kashmir’s tax system with the Centre’s rationalisation agenda, aiming to create a simpler, more transparent and consumer-friendly GST structure.
(With Input from PTI report) |
