GST Council – 1st Meeting Press Conference by Sh Arun Jaitley

By | November 5, 2016
(Last Updated On: November 5, 2016)

GST Council – 1st Meeting (India)

Arun Jaitley live press conference after the GST council meet

Key Decision after GST Council – First Meeting on 22 September 2016

All decisions in GST council first meeting were with consensus and no voting was done.

Mainly 6 issues were discussed in GST Council 1st Meeting

GST Exemption Threshold limit

Meaning of Revenue for Compensation to States

3 Base year for compensation to states

Method of Projecting revenue increase in next Five year for compensation to states.

5 Dual Control

6. GST Rates and slabs

GST Exemption Threshold limit

Decisions of GST Council  :-

GST Exemption Threshold limit of Rs 20 Lakh fixed . It means if Traders under GST has turnover above Rs 20 Lakh they  have to Pay GST.

GST Exemption Threshold limit is not same across India.

For 11 States GST Exemption threshold limit shall be Rs 10 Lakh. ( it Includes 7 north Eastern States and 4 hilly states.

Meaning of Revenue for Compensation to States

Decisions of GST Council  :-

Revenue would be defined to include all Cess for the purpose of sharing with states.

Base year for compensation to states

Decisions of GST Council   :-

Compensation Norms of states decided in GST first council meeting. Base year for compensation to states would be 2015-`16.

Method of Projecting revenue increase in next Five year for compensation to states.

Decisions of GST Council  :-

Compensation Norms of states decided in GST first council meeting.Payment of compensation will be at regular interval to states ( Quarterly or monthly)

Method of projecting revenue in next 5 years would be decided in future GST council Meetings.

Dual Control  & Assessment of Assessees

Key question is who will Assess which Assessee. Whether Center or State govt will have Assessement Power.

Decisions of GST Council  

Assessees with turnover below Rs 1.5 Crores will be assessed by State Authorities.

Assessees with turnover above Rs 1.5 crore under GST,  there will Dual Control of Center and States and there will be cross empowerment of States and Center.  Assessment will be based on Risk Assessment to be decided by Center and state governments. Whose ever ( Center or State ) Risk Assessment is more , that will Assess the Assessee.

Existing Service Tax Assessees ( Even if below turnover of Rs 1.5 crore) will be continued to be assessed by Center Govt as it has expertise. But in future when the state Govt officer will be trained then new service tax Assessee will be assessed by states / center as per norms to be decided.

GST Rates and slabs

Decisions of GST Council   :-

GST Rates and slabs  to be decided in  GST Council 3rd meeting to be held on 17th October 2016 to 19th October 2016

Next GST Council meeting – 2nd GST Council meeting will be held on 30th September 2016

Items for  2nd GST Council meeting :

  1. To approve GST Draft Rules and Formats
  2. To Decide how Exemptions to be implemented e.g Noth East State Exemptions, Area Based exemptions, Industry wise exemptions.

Direct Taxes Ready Reckoner Service Tax Ready Reckoner Company Law Ready Reckoner tax deduction at source
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