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Positive Signals from the GST Council meeting – 22-23 Sept.16

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Positive Signals from the GST Council meeting – 22-23 Sept.16

News Accessed From :

http://www.thehindu.com/opinion/editorial/editorial-on-gst-bill-positive...

http://indianexpress.com/article/business/business-others/gst-council-me...

News Accessed On : 29th September 2016

 

Excerpts from the report:

  • The GST Council, led by the Union Finance Minister and with representatives from all States, had its first meeting on September 22-23, flagging off the process of determining the nitty-gritty of the new indirect tax system and resolving differences on crucial first-principle issues
  • 1 April 2017 is the date set for start of GST (Financial year in India usually is considered from April-March)
  • Finance Minister, admitted to a ‘challenging’ timeline, but was optimistic of it being doable
  • Rules and timetable for GST Council meetings were agreed on
  • The Council reached a consensus on the threshold turnover for a business to be covered by the GST, Rs.2,000,000 (~ USD 30,700), which ensures that the new tax will not be a compliance burden for small retailers and traders. A caveat was Rs 1,000,000 (~USD 15,400) for North Eastern and hilly states to be under GST
  • Businesses with turnover of Rs 15,000,000 (~ USD 230,700) annually continue to be under state control and beyond that will be dual control (Centre and State)
  • The Council agreed on the draft compensation formula for States’ revenue losses and accepted industry’s rationale to subsume numerous cess levies in the GST
  • All decisions were arrived at by consensus: the States have two-thirds voting power and the Centre has one-third

Follow this link to read more:

http://www.thehindu.com/opinion/editorial/editorial-on-gst-bill-positive...

http://indianexpress.com/article/business/business-others/gst-council-me...