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
1 GST Exemption Threshold limit
2 Meaning of Revenue for Compensation to States
3 Base year for compensation to states
4 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 :
- To approve GST Draft Rules and Formats
- To Decide how Exemptions to be implemented e.g Noth East State Exemptions, Area Based exemptions, Industry wise exemptions.