Through the enactment of Integrated Goods and Services Act 2017 the Central Government is empowered with the power to levy tax on interstate supply of goods and services or on any other matter connected to such supplies between States.
Upon the removal of Article 370, Indian Government had decided to levy tax from J&K through the enactment of The Integrated Goods and services Tax (Extension to Jammu and Kashmir Act 2017. The act came into existence on 8th July 2017 and it had amended the integrated goods and services Tax Act 2017 for the tax levy extension in Jammu and Kashmir.