2016 GST Council Meet in New Delhi Sep 22-23,2016 - GST threshold set at 20 lakh Friday Sep 23,2016

 

The Goods and Services Tax (GST) Council on Friday Sep 23,2016 reached a consensus on 3 crucial issues – 

1. the threshold for exemption
2. the draft compensation formula and 
3. 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. 

In a major breakthrough that paves the way for the rollout of the Goods and Services Tax (GST) from April 1, 2017, the Centre and the States on Friday Sep 23,2016 agreed to set an annual turnover limit for exemption from GST at ₹20 lakh, and reached a broad consensus on issues relating to dual control as well as compensation.

Concluding the first meeting of the GST Council, Finance Minister Arun Jaitley said, “The threshold for the levy of GST has been set at ₹20 lakh, except the hill and North-Eastern States — where it will be ₹10 lakh.”

The GST Council set the date for its next meeting for September 30; it will discuss the revenue-neutral rates for the indirect tax levy in October 2016

A third meeting has been scheduled for October 17, 18 and 19, and the major issue of rates and slabs for GST will be taken up then, he added.