Finance Minister Arun Jaitley addressed the media on GST after today’s Council meeting:-
1. The entire taxation base will be shared between the assessment and machinery of the Centre and the states.
2. Those above turnover 1.5 crores would be assessed in the ratio of 50:50 between Centre and state.
3. All assesses with GST turnover of Rs 1.5 crore or less, 90 per cent of them will be assessed by States & 10 per cent by administrative machinery of Centre.
4. States will also be cross empowered on the ratio mentioned earlier.
5. States will be empowered to collect tax in any economic activity in this decision.
6. As far as the area of 12 nautical miles into the territorial waters is concerned, it is a part of the Union government territory but as per convention, the states will be empowered to collect tax on any economic activity in this territory.
7. An alternative proposal made by a minister from Tamil Nadu. It was debated upon, improved and finally agreed upon.
8. All the minister present agreed to the proposal except the West Bengal minister, who said that the division of assets to 90-10 to 100-10.
9. The SGST and the CGST, the draft of those laws tentatively by the officers and will come up before the GST council by the 18th Feb.
10. This exercise will in all probability take us well into the March.
The ministers then assessed a realistic date by when the 3 important things pending, final draft legislations and the rules, approval of these by the legislative bodies can take place.
11. There was a broad view that the 1st of July appears to be more realistic since its transactional tax it can be introduced any time.
Also they felt that the industry and trade would have to be given adequate notice.
12. The system of GST will have to be modified suitably. So, our next meeting will be on the 18th of February.