Jammu and Kashmir was the only state, which could not join the "One Nation, One Tax" regime on July 1. However, the President of India Pranab Mukherjee promulgated two ordinances of CGST and IGST on Sunday in the state with effect from July 8.
"Extending the domain of Central GST Act and the Integrated GST Act to the State of Jammu and Kashmir, the State of Jammu and Kashmir has become part of the GST regime, making GST truly a "one nation, one tax" regime," a government release mentioned.
Because of the special provisions applicable to J&K extra steps had to be taken before the state could join the GST.
On July 6, the state took the first step towards adopting the GST regime with the President of India giving assent to the Constitution (Application to Jammu and Kashmir) Amendment Order 2017. "Resultantly, the One Hundred and First Amendment Act, 2016 to the Constitution of India that paved the way for introduction of GST in the country, became applicable to the State of Jammu and Kashmir also," the release also mentioned.
Following this, on July, 7 the state Assembly passed the GST Bill by the State Legislature. The J&K CM Mehbooba Mufti said "J&K cannot get bigger azadi than this order, restoring the lost sanctity of our Assembly."
Responding to J&K's demands to safeguard its taxing rights under Article 370, the presidential order reads: "…the powers of the State of J&K as per Section 5 of the Constitution of J&K, shall remain intact." The order called for incorporation of fresh clauses under Article 246 of the Constitution. "Under 246A (1), the Legislature of the State of Jammu and Kashmir shall have powers to make laws with respect to goods and services tax levied by the State." Mufti also thanked the Prime Minister Narendra Modi, and Union Finance Minister Arun Jaitley and said, "This act of the Centre will be written in golden words in Kashmir's history."