LATEST NEWS – In a significant breakthrough, the GST Council on Monday broke a deadlock on contentious issues of administration over assesses, the right of coastal states to tax economic activities within 12 nautical miles inside sea and broadly agreed to roll out the goods and services tax (GST) from July one, 2017 instead of earlier planned April one.
Against the earlier proposals of reserving all administration of assessees up to Rs 1.5 crore of annual turnover with states — technically called horizontal model — and another of allowing both the Centre and states to have such control-technically called cross empowerment; the Council decided to blend the two.
Now, the entire tax base will be shared between the Centre and states in a pre-determined ratio, union finance minister Arun Jaitley, who is the chair of the Council, told a press conference after the meeting.
The Centre and states agreed that the latter will have power to administer 90 per cent of assessees up to annual turnover of Rs 1.5 crore, while the former will have such power to audit, send notices and scrutinise over 10 per cent of the tax base. READ MORE