Comments
The Goods and Services Tax (GST) Council on Friday reached a consensus on three crucial issues – the threshold for exemption, the draft compensation formula and the issue of dual control.
Businesses with an annual turnover of up to Rs 10 lakh in the North East and hill states and Rs 20 lakh in all other states will be exempt from GST, Finance Minister Arun Jaitley said on Friday after the meeting of the Council.
While the exact compensation formula based on the revenue projection will be worked out, Jaitley said that all cesses will be considered under the compensation from the Centre. States have indicated that the compensation should be paid on regular – quarterly or bi-monthly intervals.
On the issue of dual control, it has been decided that businesses with an annual turnover of up to Rs 1.5 crore will be assessed by the States.
For those above the threshold, there will be an element of dual control and they will be assessed either by the Centre or States based on a formula for risk assessment.
Meanwhile the 11 lakh existing service tax assesses will be assessed by the Centre and State officials after training will begin to help assess future assesses.
The next meeting of the GST Council will be on September 30 to discuss the draft guidelines and exemptions, Jaitley said.
The Council will have another round of meetings on October 17, 18 and 19 to finalise the crucial rates and slabs for GST.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.