Breaking News

GST to roll out in July as the Centre and States reach consensus

M_Id_471538_Jaitley-ModiAfter six long meetings the Central Government and the State Governments have arrived at a compromise, that will allow the roll out of the much awaited Goods and Services Tax (GST) by July, 2017. Although the roll out had been planned for April, a delay of 3 months has been termed as inconsequential as the country will finally get a tax mechanism that will prevent double taxation and shall allow businessmen to have a single window to pay taxes and get tax refunds.

The Centre and the States have decided to concede some points to each other and come to a consensus that allows them to roll out the much awaited GST in July this year. The State Governments wanted control over small units, i.e. units with an annual turnover of less than Rs 1.5 crores. The GST council agreed that the State Governments will control 90% of these entities and the Centre shall control the rest.

With respect to the second bone of contention, about taxation of any business or economic activity in the high seas, .i.e in areas that are about 12 nautical miles off the coast of India, the State Governments will have the power to tax these businesses, but the GST council agreed that, constitutionally it is the Centre that had jurisdiction over these territorial waters.

For enterprises and businesses with an annual turnover of more than Rs 1.5 crores, the Centre and the State Govenrment would manage them jointly, but the taxpayer would face only one single agency and would be assessed only once.

About Team | NewsPatrolling

Comments are closed.

Scroll To Top