GST Council 9th Meeting – Key Decisions
GST Council 9th Meeting was held on 16.01.2017 [ watch Address by Arun Jaitlely after GST Council 9th meeting ] . Following are the Key Points
GST Implementation Date in India
India will likely be able to roll out the goods and services tax (GST) from July 1, 2017 following a breakthrough on Monday over the seemingly intractable issue of tax administration after the Centre accommodated states’ concerns.
“It’s a significant headway,” Union Finance Minister Arun Jaitley said after a day-long meeting of the GST Council with both sides agreeing on most matters.
“There was a broad view that first of July appears to be more realistic,” Jaitley said, adding that GST is a transactional tax and can be introduced any time.
He said ministers also felt that industry and trade will have to be given adequate notice and once the rates are decided, the GST Network’s system will have to be modified suitably. The GSTN is GST’s technological backbone.
Dual Control of Center and State in GST Assessment
Under the proposed tax regime, 90% of all assessees with a turnover of Rs 1.5 crore or less will be assessed for scrutiny and audit by state authorities, the remaining 10% by the Centre.
Assessees with a turnover above Rs 1.5 crore , Centre and states will assess in a 50:50 ratio. The agreement hammered out was based on a proposal by Tamil Nadu.
“Each assessee would be assessed only by one authority,” Jaitley said, putting to rest fears over dual administration by both state and the Centre.
You won’t have to jump from authority to authority, that’s the advantage of GST… Computer programming will be done in such a way that there is no discretion (in selection of assessees).”
Sharing of Taxation Base
The GST Council, which has Jaitley as chairman and state ministers as members, resolved to share the entire taxation base between the assessment machinery of the Centre and the states.
Both will have intelligencebased assessment powers, Jaitley said. The Centre has also given leeway to states on integrated GST (I-GST), which deals with inter-state sales.
Jaitley said the power to levy and collect the I-GST lies with the central government but states will also be cross-empowered in the same ratio as above through a special provision in law.
Resolving of IGST Dispute under GST
Any IGST disputes among states will be resolved by the Centre.
Taxation Rights under GST in Territorial waters extending to 12 nautical miles
The Centre also ceded ground on taxation rights over the sea. Territorial waters extending to 12 nautical miles fall under control of the union government but as per convention, states will be empowered to collect tax on any economic activity in this zone. “This decision has been taken after very wide consultations,” Jaitley said.
Pending Issue to be decided by GST Council
Three key pending matters —
1 final draft legislation and rules,
2. approval of rules and draft by legislative bodies and
3. setting of rates for the slabs agreed.
What remains now are rates for various goods and services, which may be decided in March 2017
Next Meeting of GST Council
Next Meeting of GST Council to be called GST Council 10th Meeting will be held on 18.02.2016