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