GST: Uncertainty over J&K rollout as PDP, BJP differences add to NC-Congress opposition

The Central Sales tax was already under force in Jammu and Kashmir and it would be replaced by the IGST," said a senior government official.

The bone of contention in the state is the constitutional amendment 101. This amendment gives Parliament "exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-state trade or commerce."

Also as per the Article 269A(1) of the Constitution of India, GST on supplies in the course of inter-state trade or commerce shall be levied and collected by the central government and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the GST Council, the body that decides the rate and other contentious issues related to the reform.

Although both the the parties are in agreement that the GST should be rolled out in the state, the BJP has held that this could have been done without seeking the concurrence of the state legislature.

The difference between the ruling allies come even as the National Conference and Congress -- the key opposition parties in the state -- have been opposing the implementation of the indirect tax reform as they feel it will erode the autonomy of the state.

However the BJP's Sunil Sethi concurs the state is represented at the Council by state finance minister Haseeb Drabu, who can put forth his views.

Wani, though, fears that the state minister will become a "rubber stamp" as the BJP ruled states will have majority say in terms of the voting strength in the council.