<p>The rollout date for India’s biggest indirect tax reform, the Goods and Services Tax (GST), has been deferred to July 1 from the earlier April 1 deadline.<br /><br /></p>.<p>But the contentious issue of “dual control” was resolved by giving the state governments power to assess 90% of assessees who have a turnover of up to Rs 1.5 crore.<br /><br />Finance Minister Arun Jaitley said the GST Council meeting on Monday made a “significant headway” and the issue of cross-empowerment or dual control was resolved.<br /><br />Jaitley said the July 1 implementation date seemed more realistic as the industry needed more time, and also because the governments at the Centre and the states were busy with Budget presentation.<br /><br />“90% of GST taxpayers with up to Rs 1.5 crore turnover will be assessed by the states and 10% by the Centre. Those above Rs 1.5 crore will be assessed 50:50 between the Centre and the states,” Jaitley added. West Bengal Finance Minister Amit Mitra said he voiced his dissent at the meeting as his government wanted 100% of taxpayers with up to Rs 1.5 crore turnover to be with states.<br /><br />The council also decided that the Centre will cede its powers to states to tax any economic activity in India’s territorial waters up to 12 nautical miles.<br /><br />The next meeting will be held on February 18 to approve the draft of Integrated GST and other supporting laws.<br /><br />Jaitley said the power to levy and collect Integrated GST, a tax on interstate movement of goods and services, will lie with the Centre but by special provisions in law, the states will also be cross-empowered.<br /></p>
<p>The rollout date for India’s biggest indirect tax reform, the Goods and Services Tax (GST), has been deferred to July 1 from the earlier April 1 deadline.<br /><br /></p>.<p>But the contentious issue of “dual control” was resolved by giving the state governments power to assess 90% of assessees who have a turnover of up to Rs 1.5 crore.<br /><br />Finance Minister Arun Jaitley said the GST Council meeting on Monday made a “significant headway” and the issue of cross-empowerment or dual control was resolved.<br /><br />Jaitley said the July 1 implementation date seemed more realistic as the industry needed more time, and also because the governments at the Centre and the states were busy with Budget presentation.<br /><br />“90% of GST taxpayers with up to Rs 1.5 crore turnover will be assessed by the states and 10% by the Centre. Those above Rs 1.5 crore will be assessed 50:50 between the Centre and the states,” Jaitley added. West Bengal Finance Minister Amit Mitra said he voiced his dissent at the meeting as his government wanted 100% of taxpayers with up to Rs 1.5 crore turnover to be with states.<br /><br />The council also decided that the Centre will cede its powers to states to tax any economic activity in India’s territorial waters up to 12 nautical miles.<br /><br />The next meeting will be held on February 18 to approve the draft of Integrated GST and other supporting laws.<br /><br />Jaitley said the power to levy and collect Integrated GST, a tax on interstate movement of goods and services, will lie with the Centre but by special provisions in law, the states will also be cross-empowered.<br /></p>