The Goods and Services Tax Council, in its second day of meeting, has struck political consensus on the GST threshold limit. Finance Minister Arun Jaitley addressing the media after the meet said the threshold limit has been set at Rs 20 lakh. For North-Eastern and other small states, the limit is Rs 10 Lakh. If a trader's turnover is less than the threshold limit per annum, he won't be covered under the indirect tax reform. The Council also resolved that all cesses will be subsumed in the GST.
The financial year ending March 31, 2016 will be the base year for making revenue projection. At the end of the first meeting, the Council headed by Finance Minister Arun Jaitley decided that the state authorities will have jurisdiction over assessees with annual turnover of less than Rs 1.5 crore.
Those with turnover of over Rs 1.5 crore, Jaitley said there would be cross examination either by officers from the Centre or state to avoid dual control. However, the power for assessment of 11 lakh service tax assessees who are currently assessed by Centre, would remain with it.
New assessees which would be added to the list would be divided between the Centre and states. While the next meeting of the Council on September 30 will finalise draft rules on granting exemptions, the GST rate and tax slabs would be decided at its three-day meeting beginning October 17.