New Delhi: Finance Minister ArunJaitley has urged Jammu and Kashmir Chief Minister Mehbooba Mufti for introduction of the goods and services tax from July 1, along with the rest of the States. Jaitley has written a letter to Mehbooba Mufti in this regard.

The Finance Minister said that if the state government is not able to introduce GST from July 1 then it may lead to increase in prices in all goods being purchased from other States.

Jaitley pointed out that this is so because the goods and services tax is a destination based tax. He said, an Integrated goods and services tax (IGST) shall be levied on all supplies of goods and services made in course of inter State trade or commerce.

The Finance Minister also mentioned that if Jammu and Kashmir does not join GST then for all purchases made by the State from other States after July 1, the dealer shall not be able to take credit of this IGST.