BJP government has again failed to build consensus on rolling out the Goods and Services Tax (GST) in Jammu and Kashmir alongwith rest of the country from Saturday, but the exercise has created a divide between the Jammu region and the Kashmir valley on the issue of the new tax regime.

The second meeting of the all party consultative group that was held in Srinagar on Thursday evening under the chairmanship of a senior PDP MP Muzaffar Hussain Beigh failed to reach a consensus on the issue.

The National Conference (NC) and Congress put their foot down on the issue of 101amendment of the Constitution, which they feared, would badly alter the Section 5 of the Constitution of Jammu and Kashmir paving way for further dilution of the special status and financial powers of the state.

The finance minister Haseeb Drabu vainly tried to convince the opposition members that adequate safeguards would be taken to prevent dilution of the special status of J-K.

The stalemate that had begun in the first meeting of the committee on 24 June could not be broken on Friday thereby casting clouds on implementation of GST in J-K.

The only alternative before the PDP—BJP government led by Mehbooba Mufti to fall in line with rest of the country on implementation of GST in the mid-night today was to promulgate an ordinance.

However, it was to be seen whether Mehbooba obliges the BJP by taking the ordinance route or sticks to her commitment of building consensus among all stakeholders and political parties in the state before rolling out the GST.

BJP, which is the coalition partner of PDP, is keen that the GST should be implemented in J-K with rest of the country, but Mehbooba is viewing the issue politically as the other Kashmir-centric parties have raised the bogey of erosion of special status of the state with GST.

Top BJP leaders, including Jitendera Singh, MOS in the PMO, had recently said that he was hopeful of the GST being rolled out in J-K with rest of the country.

Beigh, who was earlier finance minister in the PDP—Congress government led by Mufti Sayeed said in yesterday’s all party consultative meeting that "If we talk of bringing a separate law, the Centre will have to amend two chapters in the Constitution to delegate powers of taxation to the state of Jammu and Kashmir. It will become a huge political issue across the country.

Besides, it will also entail amending Section 5 of J&K Constitution which can't be done. More so, any attempt on fiddling with Section 5 will open a pandora box which will have huge political ramifications for J-K in future.