Mumbai, December 23: As a yet another face off with GST Council ends today, Finance Minister Arun Jaitley fails to arrive at a consensus on contentious dual control issue with the Sates despite his “best efforts” and hopes for meeting April 1 deadline get darker.
In a two-day Good and Service Tax Council meet that concluded today, the Centre and the States Council failed to reach at consensus for Integrated GST (IGST) Bill and dual control regarding division of jurisdiction and administrative powers over tax assesses. However, they agreed to a “revenue sharing formula” for compensating states for the loss on income after the levy of GST.
“I am trying my best (on deadline of April 1). I don’t want to hasten the process of discussion and don’t want to delay the implementation,” Jaitley said at a press briefing after the Council meet ended.
The Finance Minister also said that there was no issue raised on dual control as the Council worked on legislations.
The drafts of Central GST (cGST) and the compensation law have been mostly approved with the only portions relating to dual control being left out, he added.
Jaitley said that the two principle issues that still remain before the Council are Integrated GST (iGST) and cross empowerment.
“In iGST, definition of territory of states is pending. And the division of authority between assessing authorities of Centre and states is pending. The two issues will be taken up together at the next meeting on January 3-4,” he added.
The council will again meet on January 3 and 4 and may come up with a new year news on “dual control” issue. The consensus if arrived at would entail power to States for levying taxing on small traders or assessees with Rs 1.5 crore annual turnover.
Next agenda on the board would be to discuss GST legislation. The government wants to reach at consensus as soon as possible as deadline for implementing the new tax regime is “close” to end.