Source: News Bharati English19 Oct 2016 20:03:35
New Delhi/ Mumbai, Oct 19: The meeting of the Goods and Services Tax (GST) Council ended without any consensus on the proposed tax rates structure. Now the GST Council will meet again on November 3 and 4 to take a decision on the four-tier tax structure proposed earlier.
According to sources, the Council has proposed the four-tier tax rates structure on the first day of its meeting on Oct 18 for the goods and services regime in the range of 6 to 26 percent.
Two standard tax rates under the GST system of 12 percent and 18 percent have also been suggested.
Briefing media after the meeting Finance Minister Arun Jaitley said that the GST Council has converged towards a consensus on the source of funding for compensating states.
“The GST Council is expected to finalise the proposed four-tier tax rates structure in the next meeting slated for November 3 and 4”, Jaitley told the media persons.
The Hindu quoted Revenue Secretary Hasmukh Adhia who said that the entire discussion in the meeting would be revisited at the next meeting as states said it was no longer possible to segregate services and goods.
Adhia said the Council could not take up for discussion the Centre’s proposal of fixing the GST on gold at 4 percent. Though the formula for determining the compensation amounts due to the states for making good the losses on their revenue collections after the shift to the GST regime, there was no consensus on the funding mechanism for these payments from the Centre.
The Centre has proposed the imposition of a cess over and above the GST on ultra luxuries to fund the compensations to the States, but the suggestion did not go down well with the States. The issue would be discussed afresh in the next meeting, he said.