J&K Govt revamps GST framework

Srinagar, Apr 11: The Jammu and Kashmir government has introduced a series of amendments to the Goods and Services Tax (GST) framework through multiple notifications, aimed at tightening compliance, revising tax structures, and streamlining procedures across sectors.
A key change relates to taxation based on retail sale price (RSP). As per the amended GST Rules, the value of supply for specified goods—including pan masala and tobacco products—will now be calculated as the declared retail sale price minus applicable tax. The move links tax liability directly to RSP, reducing the scope for underreporting.
In a related step, the government has amended the GST Act notification to formally bring these goods under the RSP-based valuation system. The list includes pan masala, cigarettes, cigars, tobacco extracts, and nicotine-based inhalation products.
Additionally, the Finance Department has revised GST rate schedules, placing several tobacco-related products under higher tax slabs. Biris have been included in the 9% category, while pan masala, unmanufactured tobacco, cigarettes, and similar items have been moved to the 20% tax bracket, reinforcing the government’s focus on boosting revenue from sin goods.
The government has also introduced special procedures for rectification of GST orders, particularly in cases involving wrongful availment of input tax credit (ITC). Taxpayers earlier denied ITC under Section 16(4), but now eligible under amended provisions, can apply for rectification within six months, with authorities directed to dispose of such applications within three months.
In another relief measure, timelines have been set for the waiver of interest and penalties under Section 128A. Registered taxpayers can clear dues by specified dates, such as March 31, 2025, to avail waivers, while extended timelines apply in cases involving appellate orders.
The government has further notified special categories of taxable supplies, bringing online money gaming, online gaming (other than money gaming), and actionable claims in casinos under the GST ambit.
On the compliance front, new provisions aim to speed up GST registration. A system-driven process will now allow registration within three working days based on data analysis and risk parameters. Additionally, small taxpayers with a monthly liability below ₹2.5 lakh can opt for simplified registration, subject to Aadhaar authentication.
The amendments also clarify refund restrictions and appellate procedures. Notably, no refund will be granted for taxes already paid for periods before the enforcement of amended provisions under Section 128A, even if disputes cover multiple periods.
In addition, a notification operationalises provisions of the J&K GST (Second Amendment) Act, 2025, retrospectively enforcing several sections from October 1, 2025.
Further, changes to Schedule IV define “specified actionable claims,” explicitly covering betting, gambling, casinos, horse racing, lottery, and online gaming, bringing J&K’s GST framework in line with central provisions. (KNO)