New Delhi: The Centre has asked the J&K Government to introduce the goods and services tax (GST) from July 1 along with the rest of the country and has cautioned that any delay will create a disadvantage for consumers and the industry of the state. Finance Minister Arun Jaitley today wrote a letter to Chief Minister Mehbooba Mufti urging introduction of the GST in Jammu and Kashmir from July 1, along with the rest of the states. In his letter, Jaitley also brought to the notice of the Chief Minister that in case state was not able to introduce the GST from July 1, it may lead to adverse impact. He pointed out that this may be in the form of a general increase in prices in J&K of all goods being purchased from other states. In addition, there can also be an increase in the price of all goods being sold from Jammu and Kashmir to other states which shall have an affect on state’s industry. Jaitley urged the Chief Minister to take all necessary steps to introduce the GST on July 1, as any delay in it would create a disadvantage for the consumers and the industry in the intervening period. The letter said as per Article 370, amendments to the Constitution of India were applicable to Jammu and Kashmir with the concurrence of the state government, as the President may by order specify. Jaitley urged the Chief Minister to send the concurrence of the state, with any modifications as considered necessary keeping in view the special constitutional position of the state, on the Constitution (101st amendment) Act, 2016 for the order of the President. He observed that the state had participated in the GST council meetings and had meaningfully contributed to framing of its various laws and rules. He thanked the Chief Minister for having hosted the 14th meeting of the GST council in Srinagar on May 18-19 where some very crucial decisions relating to the GST, including decisions on a majority of the tax rates were taken. Detailing the disadvantages to consumers and industry, the Finance Minister pointed out that if Jammu and Kashmir did not join the GST, for all purchases made by J&K from other states after July 1, the dealer would not be able to take credit of IGST which would get embedded into the price of purchased goods or services, leading to cascading of tax and increase in price of goods or services for the final consumers in J&K. Similarly, in case of goods or services sold fromJ&Kto other states, the buyers will not be able to take credit of the local taxes paid to the dealer. This will increase the cost through embedding of such taxes in the price.