Source: News Bharati English16 Jan 2017 20:48:57
New Delhi, Jan 16: Setting up the deadline of July 1 for the much awaited big bang reform of GST, Centre and states have agreed on the sharing powers for control over tax payers under GST. The consensus was reached after the Centre agreed to the demand of states to go in for horizontal split with regard to tax payers based on annual turnover.
The ice was broken in the 9th meeting of all-powerful GST Council .States will have powers to assess and administer 90 per cent of the tax payers under Rs 1.5 crore annual turnovers while the remaining would be controlled by the Centre.
For tax payers with more than Rs 1.5 crore turnovers, states and the Centre will control and administer them in 50:50 ratio. The GST bill will come into the play from July 1 instead of April 1 which was earlier planned by center.
Speaking to the media Finance Minister Arun Jaitley informed that the decisions were taken at the meeting where states would also have the powers to levy tax on economic activity within 12 nautical miles of territorial waters even though such rights constitutionally vest with the Centre.
He said the power to levy and collect Integrated-GST, a tax on inter-state movement of goods and services, will lie with Centre but by special provisions in law, states will also be cross-empowered.
The next meeting of Council will meet on February 18 to approve of the drafts of IGST law and other supporting legislations needs for subsuming central and state levies like excise duty and service tax and VAT, he said.