GST threshold fixed at 20 lakh; States to get control over dealers with turnover up to 1.5 cr

By | September 23, 2016
(Last Updated On: September 23, 2016)

GST threshold fixed at 20 lakh; States to get control over dealers with turnover up to 1.5 cr

In the first meeting of GST council certain decisions were taken at by consensus and not by voting. In a big step towards the implementation of GST, the Centre and the states agreed on two crucial issues:

   i) Revenue threshold limit for exemption from GST, and

  ii) Sharing of administrative powers between the Centre and States.

Revenue threshold for GST exemption fixed at Rs 20 lakh for all States except north-eastern and hill States wherein the limit is Rs 10 lakh.

The issue of dual control over small traders has also been resolved. States will get exclusive control over all dealers up to a revenue threshold of Rs 1.5 crore. For traders above Rs 1.5 crore, a mechanism will be worked out wherein one dealer will be regulated either by the Central government or the state government.

However, given the lack of expertise among the states to handle service providers, the Centre will get control over all the 11 lakh service tax registered dealers irrespective of their revenue levels.

The next meeting of GST council will be held on 30 September, 2016 which will decide on the draft rules and on area-based exemptions. However, the tax rates will be decided in the meeting to be held from 17-19 October, 2016.

Source: Livemint .com

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