Headway on dual control, GST likely in July: Jaitley

THE CENTRE and the states managed to hammer out a broad consensus over the contentious issue of division of administrative control over tax assessees at the ninth meeting of GST Council Monday though it will be at the cost of a three-month delay in the rollout of the proposed indirect tax regime.

Finance Minister Arun Jaitley said 90 per cent of tax assessees below the annual turnover threshold of Rs 1.5 crore will be under the control of states and the remaining 10 per cent will be under the Centre’s jurisdiction. For a turnover of Rs 1.5 crore and higher, there will be equal division of assessees between the states and the Centre.

Calling it a significant headway, Jaitley said, “The states would do 50 per cent of assessees above Rs 1.5 crore turnover and 90 per cent of less than Rs 1.5 crore turnover. The Centre would get to assess 50 per cent of above Rs 1.5 crore turnover and 10 per cent of less than Rs 1.5 crore turnover.”

Some ministers, including West Bengal Finance Minister Amit Mitra, are learnt to have objected to the 90:10 ratio of division between the states and the Centre, instead seeking exclusive control over all tax assessees below the annual turnover threshold of Rs 1.5 crore.

“As far as the dual control is concerned, the Centre has come, finally, very close to the position

PTI In New Delhi Monday.