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Govt extends last date for filing and payment of GST by 5 days; now file your return till August 25

Govt extends last date for filing and payment of GST by 5 days; now file your return till August 25

gst filing

Technical glitch held up filing of the first Goods and Services Tax return on the last day prompting the government to extend the last date to August 25.

A finance ministry statement said the GST Implementation Committee, consisting of state and central government officers, has taken a decision to extend the last date for payment of the GST for the month of July 2017 to 25th August, 2017.

Saturday or August 20th was the last day for payment of GST and filing of the simplified return–Form 3B for the month of July.

Form 3B is a special summary return introduced for July and August months. Tax practioners and traders represented to the government seeking extension of the filing date.

“Since it is the first Return to be filed under GST, the tax payers and the tax practitioners have requested for few more days to file their Return. Also, there have been requests from states which are hit with floods to extend the last date for filing of GST Returns. The State of Jammu & Kashmir has also requested for extension of time because of late passing of their GST Ordinance. Some technical glitches are also experienced by last minute return filers,” the statement said.

The statement said for those tax payers, who do not want to avail of transitional credit in TRANS1 this month, the date for return filing will be 25th August 2017. And for those who want to fill up TRANS1 this month, the last date for filing of returns will be 28th August 2017, as announced earlier.

Source :  The Economic Times
Form to claim past credit under GST expected from tomorrow

Form to claim past credit under GST expected from tomorrow

GST Input tax credit

GST tax portal is likely to offer from tomorrow forms to claim the credit on sales made before the rollout of Goods and Service Tax which the taxpayers have to file by August 28, a government official said today.

As GST return forms did not have a column for claiming transitional input credit, the government yesterday gave some breather to such taxpayers by giving them an extra week till August 28 to file returns.

These taxpayers will, however, have to pay taxes by August 20 on the portal of the GST Network (GSTN)- the IT infrastructure provider for the new indirect tax regime.

While GSTR 3B is the form for filing GST return, TRANS I is the form in which the businesses will have to give the details of credit that they are claiming for payment of taxes before the rollout of Goods and Service Tax.


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“The transitional form is almost ready and we are working to upload it by tomorrow so that businesses can start filing TRANS I,” a senior revenue department official said.

Yesterday, the finance ministry had said the TRANS I form will be available on the GSTN website from August 21.

Giving relaxation to the businesses that need to claim transitional input tax credit, the ministry yesterday allowed them to deposit taxes on the basis of self-assessment by August 20, but gave them one more week till August 28 to file return.

The taxpayers who do not claim any transitional input tax credit will have to necessarily pay tax and file return in Form 3B before the due date of August 20.

Over 71.30 lakh excise, service tax and VAT payers have  migrated to the GSTN portal. Also, 15 lakh fresh registrations have happened on the portal.

For an easy compliance, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout.

So, GST returns for July and August will be filed on GSTN portal by filling GSTR 3B form. Return filing commenced on August 5.


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Source: TOI
GST relief: Govt extends GST return filing deadline for cos who want to claim credit for past taxes

GST relief: Govt extends GST return filing deadline for cos who want to claim credit for past taxes

GST: GSTR3B return

The government on Thursday gave some relief to taxpayers availing of transitional input tax credit under the GST (Goods and Services Tax) regime by giving them an extra week till 28 August 28 to file tax returns.

Businesses under the Goods and Services Tax (GST) set up have to file their first return, GSTR 3B, for July on the portal of GST Network — the IT infrastructure provider for the new indirect tax regime — by 20 August. The return filing had commenced on 5 August.

The finance ministry offered some relaxation to those businesses that claim transitional input tax credit. These entities will have to deposit taxes on the basis of self-assessment by 20 August, but they will have one more week till 28 August to file their returns. Those taxpayers that do not claim any transitional input tax credit will have to necessarily pay tax and file return in Form 3B before the due date of 20 August, the ministry said.

It added that concerns have been raised about the form to claim transitional input tax credit not being available on the GSTN website. This form will be available on the GSTN website from 21 August. “A small window of opportunity is being given to all the taxpayers… The taxpayers who want to avail of the transitional input tax credit … (will) have to make full settlement of the liability after adjusting the transitional input tax credit before August 20, 2017,” it said.


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They will get time up to 28 August, 2017, to submit Form TRANS I after estimating transitional credit and Form 3B. “In case of shortfall in the amount already paid vis-a-vis the amount payable on submission of Form 3B, the same will have to be paid with interest of 18 percent for the period between August 21, 2017, till the payment of such differential amount,” the ministry said.

To make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout. So, the GST returns for July and August will be filed on the Goods and Services Tax Network (GSTN) portal by filling the GSTR 3B form.

Over 71.30 lakh excise, service tax and VAT payers have migrated to the GSTN portal. Also 15 lakh fresh registrations have happened on the portal. The final GST returns for July will have to be filed by these businesses by 5 September instead of 10 August. Companies will have to file sale invoice for August with GST Network by 20 September instead of 10 September earlier.

GST Relief


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Source: First Post
Here’s how a missing column in GST return form is creating trouble for India Inc

Here’s how a missing column in GST return form is creating trouble for India Inc

GST Return

A top conglomerate may have to shell out a bit extra in advance tax this quarter due to an unusual glitch in the tax returns form. Another Delhi-based firm, which does not want to bear any extra tax, may simply deduct the dues before the GST kicked in on July 1 and pay a smaller net amount.

The absence of a column in the new GST form for claiming credit on sales made before July 1 this year is causing a lot of worries for India Inc as the filing deadline for the first month of tax returns under GST comes up this week.

Many companies don’t know whether the government will rectify this problem by Friday, the deadline for filing returns, and are following different options for resolving the quandary.

Multinationals and some of India’s biggest companies are not taking into account past input credit while paying GST while smaller companies that can’t afford to let their working capital rise are paying the tax after deducting the input tax credit.

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“A procedural lapse by the government doesn’t take away companies’ right to what’s prescribed in the law. GST law prescribes that companies can adjust past credits with July and August liabilities,” said the CFO of a Delhi-based company.

Industry trackers, however, say that doing so may be “technically incorrect.” “Certain businesses may prefer being cautious and pay the tax for July and August without considering the opening credit balance, while other businesses would adjust the credit and pay the tax, leading to disparities in tax treat ment from the first GST return,” said MS Mani, partner, Deloitte Haskins & Sells.

The deadline for filing the GST Transition Credit Form, titled GSTTran 1, is September 28, while that of making payments for July and August is much earlier. There is no column in GSTR 3B form where companies can mention the advance taxes paid before July 1. The government had said last week that it would sort out the issue, but with just four days left for filing the GSTR 3B form companies are not waiting for clarification.

“Companies are puzzled by what they should be doing and why they could be required to fork out large sums as GST in July and August and the apparent inability of the government to simply permit the utilisation of the opening credit while computing the tax liability for July and August,” said a tax expert advising four of the biggest Indian companies.

Back of envelope calculations by two tax consultants show Indian companies may end up paying anywhere around Rs 13,000 crore more to government for July and August. If this happens, working capital costs are likely to rise across the board.

“There would be a significant impact on the working capital of several companies if they are not permitted to use the opening balance of credits. It does appear that the legislative intent of permitting carrying forward of credit from the earlier regime without any timing intervals has not been appropriately reflected in the GST returns for July and August,” said Mani.

The government may just see a windfall gain for July and August GST in advance tax collection thanks to this procedural lapse.


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Source :  http://economictimes.indiatimes.com/news/economy/policy/heres-how-a-missing-column-in-gst-return-form-is-creating-trouble-for-india-inc/articleshow/60093630.cms
GST base looks set to be at least 25% wider than earlier tax regime

GST base looks set to be at least 25% wider than earlier tax regime

finance ministry : GST

Sticking to the 1 July deadline for rolling out the GST (goods and service tax) seems to have paid off as far as the number of registered indirect tax assessees, referred to as the tax base, and the potential for a revenue boost to the exchequer are concerned.

The number of indirect tax assessees who have applied for registration or registered to pay GST is set to cross the 10 million mark soon, a 25% expansion from the 8 million assessees registered under the earlier tax system for paying excise duty, service tax and state-level value-added tax (VAT), said a senior finance ministry official who asked not to be named.

A wider tax base may lead to increased tax buoyancy, the official said. Tax collection is said to be buoyant when growth in tax receipts surpasses the economic growth rate.

A wider tax base is of immense significance to the government as it will help it stick to the fiscal deficit target of 3.2% for 2017-18 even if some of the non-tax revenue receipts such as disinvestment proceeds, payments from the telecom industry for spectrum and other levies fall below the levels estimated at the time of making the budget.

“The registration process under the GST Network (the company that processes tax returns) is going on very well. It may cross the 10 million mark soon,” said the official. On 4 August, finance minister Arun Jaitley said 7.2 million dealers of the 8 million under the old regime have registered under GSTN, while an additional 1.3 million new dealers have also registered under GSTN.

On Wednesday, the cabinet committee on economic affairs chaired by Prime Minister Narendra Modi cleared a Rs27,413 crore budgetary support to make the transition to GST easier for factories set up in hill states of Jammu & Kashmir, Uttarakhand and Himachal Pradesh, and in northeastern states. Despite the overhaul of the indirect tax regime on 1 July, more than 4,200 industrial units located in these remote areas will continue to receive the tax benefits promised to them when the authorities wooed them to invest there.


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The budgetary support will let the central government refund part of the GST these units pay. It will ensure that the excise duty exemption available to them in the earlier regime continues in a modified form. An official statement issued after the cabinet meeting said that the refund scheme is applicable from 1 July 2017 till 31 March 2027.

The excise duty exemption available in these states comes to an end in different years but all those who have set up units before that terminal date will get the benefit of exemption for the subsequent 10 years. The benefit will be in the form of refund in GST regime.

The official statement said the share of GST which goes to the Union government—central GST and the central government’s share of integrated GST (IGST) levied on inter-state commerce—will be refunded under the scheme. Operational guidelines of the scheme will be notified in six weeks by the department of industrial policy and promotion, the statement said.

Jaitley, who briefed reporters about the cabinet decision, clarified that the central government will refund only 58% of the taxes it collects from these units as it transfers 42% of its tax proceeds to states under the formula recommended by the 14th Finance Commission. The respective states have to take a call on refunding the 42% of GST proceeds they get from these units.

“The refund benefit, it seems, will be available up to 2027 and may be customized separately for different industry sectors,” said Abhishek Jain, tax partner, EY.


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Source: Livemint
As filing GST interim tax returns deadline fast approaches, another stumbling block set to hit taxpayers

As filing GST interim tax returns deadline fast approaches, another stumbling block set to hit taxpayers

GST-Returns

With less than a week left for filing interim tax returns under the goods and services tax (GST), taxpayers may be staring at another stumbling block. Sources told FE that the GST Network has delayed the delivery of application programming interfaces (APIs) for the summarised interim return (GSTR 3B) to GST suvidha providers (GSPs). This would mean the assessees will have to file returns directly on the GSTN portal instead of being able to use the IT solution provided by GSPs. However, a senior GST Network (GSTN) official said API for GSTR 3B was never intended to be delivered to the GSPs in the first place and was only accommodated as a deliverable as an afterthought. “Initially, this API was developed only for central board of excise and customs (CBEC) and state government, but we decided to give it to GSPs too,” the official said. The official added that the this delay will not hamper the process of filing return as taxpayers were already doing so at its portal.

The GSTN, which has created the IT backbone for the new indirect tax regime, provides selected IT companies (GSPs) with APIs — set of instructions specifying how software components interact. GSPs, which have authorised access to GSTN servers, use these to build customised solutions for different needs of the assessees, including filing tax returns.

GSPs say delayed delivery of API would put the GSTN system under immense strain as all filings will have to be performed at its portal. “GSTN portal can handle 55,000 taxpayers filing simultaneous returns but even this could be tested in the last two days of the filing period,” an executive of GSP told FE on the condition of anonymity.

While downplaying the API delay impact, the GSTN official said many GSPs were not ready themselves as nearly half of the 34 such firms had not connected to the its portal. “The upload of invoices and filing of returns through GSPs has been quite slow, which indicates the lack of preparedness on part of GSPs,” another source said. The source added that one of the GSPs is yet to acquire a leaseline – dedicated internet connectivity for data transfer.

Additionally, only a fraction of registered taxpayers amounting to 16,000 had filed returns till a week ago, which portends a rush closer to August 20, the deadline for filing.

However, the official at GSTN said the system was capable of handling even half the total load of filers on the last two days as this was the case even in the VAT regime.

Till August 5, nearly 87 lakh taxpayers had registered on the GSTN portal as taxpayers under GST. Of this, nearly 71 lakh businesses have migrated from earlier VAT or central excise or service tax regime, while 16 lakh new taxpayers too have registered with the portal. What could further compound the problem is the incomplete registrations submitted by the registrants. The GSTN had earlier said over 30% of the firms registered on the portal had not completed the second form. This would prevent these businesses from filing returns.


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Source :  Financial Express
Understanding the Intricacies of GST While Buying a Home

Understanding the Intricacies of GST While Buying a Home

Intricacies of GST

House, a place we stay in, a place we call home, the place that shelters us, is one of the basic requirements. People can’t just stop buying houses just because a 12% or 18% GST is being levied on it, this need is one that cannot be done away with and so this article aims to help all those homebuyers take a decision about the most feasible and easy on the pocket option for them.

Since after the roll out of GST, purchase of any developed plot or apartment attracts 12% GST, however, the purchase of a housing unit in a completed project, which has received occupation certificate (OC) or where registry can be done is exempt from GST.

However, if the OC has only been applied for, but has not been issued by the Authority the buyer will be subject to 12% GST of the total value of the apartment. Therefore, a project which has received OC is less expensive than the one that has not received the OC merely owing to the applicability of GST at 12%.

Once the developer receives the OC, he will be required to get the registry of the housing unit done however he will only be allowed to get it done if he has cleared all the dues against the project.

GST was introduced with the aim of reduction in prices by availing input tax credits and passing it on to the customer. So a developer whose project has been completed but has not received the OC yet, can avail tax credit of 2.40% of the cost by simply submitting the invoices and bills of the purchase inputs like cement, steel, etc. this credit will be paid out to the developer from the taxes that the buyer will pay for the final apartment.

However, this tax credit can be availed by developers only for the taxes paid by them after July 1 i.e. after the rollout of GST and also if the entire project was implemented after July 1st. According to the Govt. the benefits are shifted on to the consumer and it will result in reduced prices of a medium and affordable range of housing units.

On the other hand, prices of premium ranged housing units are expected to rise substantially.

A developer whose project was partially complete and under construction as on July 1, can claim tax credit as well however such tax credit can only be availed only on certain inputs and taxes paid after July 1thereby reducing the benefit being passed on to the developer to the consumers.

 


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Source: http://www.news18.com/news/business/understanding-the-intricacies-of-gst-while-buying-a-home-1492509.html
Transition to GST takes a toll on Q1 results: Analysis

Transition to GST takes a toll on Q1 results: Analysis

Transition to GST takes a toll on Q1 results: Analysis

June quarter sales and profit growth of listed companies were hit by the transition to GST, a Mint analysis shows. This has prompted analysts to continue cutting earnings estimates for the current fiscal and the next, thus making stock valuations look more expensive.

According to data compiled from Capitaline, June quarter net sales growth of 1,671 BSE-listed companies slipped to a three-quarter low of 4.51% as distributors and retailers stopped stocking goods and liquidated inventory ahead of the GST implementation on 1 July.

Similarly, net profit growth after adjusting for one-time items fell to a six-quarter low. It shrank 3.89% in June, compared with a year ago. This sample set excludes banks, financial services firms and energy companies as they follow a different earnings model.

“Last quarter earnings were hit by a combination of factors. Though GST disrupted business, there were a few other sector-specific issues specifically in information technology (IT) and pharmaceuticals which impacted overall growth in Q1,” said Navneet Munot, chief investment officer at SBI Mutual Fund.

He also added that a further appreciation of the rupee—which has gained 6% against the dollar this year—may extend the pain of companies that earn much of their revenue in dollars.

That the pain to earnings is likely to sustain can be seen from the continuing earnings downgrades.

Data from Bloomberg show Nifty companies’ consensus earnings per share forecast for the current fiscal has fallen 7.23% since April; for fiscal 2018-19, it has been cut by 3.43%.

For the 50 members of the Nifty index, adjusted net profit fell to a four-quarter low, shrinking 0.84% year-on-year. The Nifty currently trades at 19.6 times 12 months forward earnings, making it one of the most expensive benchmark gauges.

“Besides GST, a global slowdown and forex losses made a deep impact on business,” said Siddhartha Khemka, head, equity research (wealth) at Centrum Broking Ltd.


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The slowdown in growth has happened despite a fall in costs.

For the 1,671 company set, raw material costs declined 6.2% helped by the falling prices of inputs such as crude oil. Brent crude prices dropped 10.7% in 2017. Similarly, employee expenses fell by 4.39%.

Still, investors would take heart from the fact that operating profit margins rose to 18.78% against 17.4% in the March quarter.

Secondly, interest costs grew slower than operating profits, and that meant the debt servicing capability of this set of firms improved a bit. The interest coverage ratio was 3.18 for the June quarter against 3.0 in the three months to March.

Some analysts such as Mayuresh Joshi, a fund manager at Angel Broking Ltd, expect an earnings recovery towards the second half of this fiscal.

“Management commentaries after the first quarter have indicated business is stabilizing post transition to GST, and companies are confident of volume growth recovery in forthcoming quarters. Also, a well spread out monsoon and festivals will see a revival in consumer demand,” said Joshi.

Munot of SBI also said that “valuations are reflecting expectations of earnings recovery”.

The Sensex and the Nifty have gained nearly 19% this year, fuelled by liquidity inflows and hope of more reforms propping economic growth. Analysts see tepid company earnings growth and risks to overall economic growth such as the threat of deflation flagged by the mid-term economic survey as key threats to the stocks rally.

 


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http://www.livemint.com/Money/mUziXHDxDgpy6PZ86kE9AP/Transition-to-GST-takes-a-toll-on-Q1-results-Analysis.html
Businesses can start filing July returns on GSTN from August 5 : CEO Navin Kumar

Businesses can start filing July returns on GSTN from August 5 : CEO Navin Kumar

GST filing Return

The first tax returns under the new Goods and Services Tax (GST) regime can be filed from Saturday and the facility will remain open till August 20, GSTN CEO Navin Kumar said today.

Businesses can start filing their first GST returns and pay taxes for July on the portal of GST Network — the IT infrastructure provider for the new indirect tax regime, beginning August 5, he told PTI here.

To make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout.

So, the GST returns for July and August will be filed on the Goods and Services Tax Network (GSTN) portal by filling up GSTR 3B form.

“We will start the facility of filing interim return form GSTR 3B by August 5 and any registered entity who has transacted business in July will have to file the return by August 20,” Kumar told PTI.

GSTN has tied up with 25 agency banks authorised by the RBI to collect taxes, he said.


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“We have tied up with all major banks, both private and public. The facility for tax payment is already on and Integrated GST is being collected. Along with filing of returns by August 20, payments for central and state GST will also come in,” said Kumar, in-charge of the biggest technology backbone created for the new indirect tax regime.

Over 71.30 lakh excise, service tax and VAT payers have migrated to the GSTN portal with 13 lakh fresh registrations.

The final GST returns for July will have to be filed by these businesses by September 5 instead of August 10.

Companies will have to file sale invoice for August with GST Network by September 20 instead of September 10 earlier.

The sales returns for September will have to be filed by October 10.


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Source: ET
There is scope for rationalisation of GST rates: FM Arun Jaitley

There is scope for rationalisation of GST rates: FM Arun Jaitley

arun jaitley : GST loksabha

With several parties raising the issue of overall taxes increasing on certain commodities and there being too many slabs after the advent of GST, Finance Minister Arun Jaitley said Wednesday that with time GST rates could be rationalised. He said random criticism of GST rates was not fair as the rates had been decided by a council of experts and economists and not arrived at casually.

The minister was speaking in Lok Sabha during the discussion over two bills to extend GST to the state of Jammu and Kashmir. The Central Goods and Services Tax (Extension to Jammu and Kashmir) Bill and the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Bill were passed by the House by a voice vote. Jaitley refuted suggestions by the Opposition, particularly the Congress, that the bills would infringe on the special status of Jammu and Kashmir. He said integration of J&K in GST would not only achieve the vision of the system but also help traders and consumers in the state.

“I am surprised that the Congress is making these arguments… In the state of J&K, this was an argument of the separatists. They have said that this would lead to greater integration of J&K with India… The special status of J&K was not meant to be an impediment in the economic development of the state,” Jaitley said. He added that if J&K did not get integrated with the GST system, everything would become expensive in the state as traders would not get any input credit. “So a consumer from the state would buy a car from Pathankot. Not only would he be inconvenienced but he would have also bypassed the local trader,” Jaitley said.


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On the question of some commodities attracting higher tax, Jaitley said, “As it [GST] moves forward, there would be scope for rationalisation. There probably will be scope that the two standard rates of 12 and 18, after some time, could be clubbed into one. That is a fair possibility and a suggestion. But if you had done it immediately and had a single slab or a lesser slab, its inflationary effect would have been much higher. Therefore, we did not get into this exercise.”

In response to Congress MP Shashi Tharoor’s comment that GST had too many slabs and thus was not one nation, one tax, Jaitley said, “I agree that there are many slabs. But we can’t have less slabs and contain inflation too… If there was one slab then a BMW and a slipper would have the same tax… it would be against the poor. We have brought commodities consumed by the poor under zero tax.”

The BJD’s Tathagata Satpathy raised the issue of GST data being used unscrupulously as GSTN was in private hands. “Data is the new oil,” he said. Jaitley said that the government had 49% stake in GSTN and the rest was in responsible hands such as HDFC and LIC. He said the government would raise its stakes later to 51% and that it would be audited by the Comptroller and Auditor General. “No decision can be taken without the government (in GSTN). We are also keeping a close watch and whatever glitches may be there will be corrected,” he said.

The minister said that the GSTN structure had been prepared by the UPA and despite pressure to change it, he stuck to it as it was the correct structure. The minister also sought to clear the air over the controversy over higher tax on sanitary napkins. “Sanitary napkins were earlier taxed at 13.8%. We brought it down to 12%. Since all input costs are taxed at between 12-18%, the input credits will bring the prices down. Self-help groups in villages which make them are not taxed.”

The Congress’s Adhir Ranjan Chowdhury said that GST on dry fruits must be brought down from current 5% or else there would be illicit trade across the LoC. Earlier, Tharoor said that extending GST to J&K has “serious impact” as it alters the taxation power of the state. By “impinging” on the state’s right, he said, the Centre is violating the Constitution.

“J&K must be approached with sensitivity, but no sensitivity was shown as the bill was passed in assembly when Opposition was not present… It could signal future problems,” Tharoor said. GST, which replaced more than a dozen central and state levies, came into effect from July 1 in other states; the J&K assembly passed a resolution adopting it on July 5.

Thereafter, the president issued an ordinance extending the provisions to the state. This was necessary because of the special status that Jammu and Kashmir enjoys under the Constitution.

 


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Source: Indian Express