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GST Council Sets Exemption Limit at Rs. 20 Lakh [ Current News (Concise) - ]

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At the first meeting, Goods & Services Tax (GST) of Council headed by Union Finance Minister Arun Jaitley decided to exempt businesses with annual turnover below Rs.20 lakh. The meeting was organized at New Delhi and the Finance ministers of all the states attended it.

Key Outcome of GST Council’s First Meeting

Exemption Issue

  • Exception limit is set to Rs. 10 Lakh for Northeastern and hill states 10 Lakh for rest of India.
  • In Northeastern and hill states, GST will get special status through a Constitutional Amendment.

Administrative Control Issue

  • Consensus was reached on the contentious issue of organizational control over indirect tax assesses.
  • States will have sole authority over businesses with turnover of Rs.1.5 crore or less. Beyond from that limit, control would be extended jointly by state and central government.
  • The existing 11 lakh service tax assesses will continue to be under the jurisdiction of the Centre.
  • States revenue officials will be trained for assessing the services sector.

Compensation Formula

  • The Central Government will pay compensation to states for losses of revenue because of the routinely, quarterly, or bi-monthly changes in GST commission.

Base Year:

  • 2015-16 will be the base year for calculating the compensation.

- Published on: September 27, 2016