GST council approves law to compensate states for revenue loss
UDAIPUR: Inching towards the rolling out of GST, the GST Council on Saturday approved a law to compensate states for any loss of revenue from the implementation of the new national sales tax but deferred approval for enabling laws to the next meeting.
The council will meet again on March 4 and 5 to approve the legally vetted draft of the supporting legislations for Central GST (C-GST) and Integrated GST (I- GST), days before the start of the second leg of the Budget Session where the Centre is hoping to get them approved. It will also approve the State GST (S-GST) law, Union Finance Minister Arun Jaitley said. GST will replace a plethora of central and state taxes.
Jaitley said the GST Council approved the Compensation Law that will legally provide for the Centre making up for any loss of revenue to states in the first five years of the rollout of the GST regime. This law will go to Parliament for approval in the second half of the Budget Session beginning March 9, Jaitley said.
Meanwhile, in a first, Oppositionruled states, on Saturday, got the Centre to delete from the records three minutes of the last council meeting, which provided for the tweaking of agreed criteria for division of taxpayers under the GST regime.
The Council, in its last meeting on January 16, had agreed that 90% of tax assessees below Rs 1.5 crore annual turnover will be assessed by states and the remaining 10% by the Centre. For taxpayers with over Rs 1.5 crore turnover, the split was 50:50 between the Centre and states.
The council will meet again on March 4 and 5 to approve the legally vetted draft of the supporting legislations for Central GST (C-GST) and Integrated GST (I- GST), days before the start of the second leg of the Budget Session where the Centre is hoping to get them approved. It will also approve the State GST (S-GST) law, Union Finance Minister Arun Jaitley said. GST will replace a plethora of central and state taxes.
Jaitley said the GST Council approved the Compensation Law that will legally provide for the Centre making up for any loss of revenue to states in the first five years of the rollout of the GST regime. This law will go to Parliament for approval in the second half of the Budget Session beginning March 9, Jaitley said.
Meanwhile, in a first, Oppositionruled states, on Saturday, got the Centre to delete from the records three minutes of the last council meeting, which provided for the tweaking of agreed criteria for division of taxpayers under the GST regime.
The Council, in its last meeting on January 16, had agreed that 90% of tax assessees below Rs 1.5 crore annual turnover will be assessed by states and the remaining 10% by the Centre. For taxpayers with over Rs 1.5 crore turnover, the split was 50:50 between the Centre and states.
