GST council meet : No consensus on dual control issue

24th dec, 2016

HIGHLIGHTS

• GST council meet failed to arrive at any consensus on dual control issue.
• The council has approved Central GST and state draft laws
• The council has also agreed to a revenue sharing formula for the states losing out on income due to duties.

NEW DELHI:Finance Minister Arun Jailtey-led Goods and Services Tax (GST) council, on Friday, again failed to reach out atconsensus on contentious dual control or cross empowerment issue that deals with assessee jurisdiction. The meet failing to find any common ground on the issue has raised serious concerns about GST’s April 1 implementation date while the Finance Minister said that he was trying his best.

“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 7th GST Council meet ended.

“There was no issue raised on dual control today as we were working on legislations,” Jaitley said.

The council, however, agreed to a revenue sharing formula for compensating states losing out on incomes out of several state taxes.

“Center Goods & Services Tax (CGST) and State Goods & Services Tax (SGST) will be a reflection of one another. States will be compensated 100 per cent loss for 5 years,” Jaitley said while announcing that the council has also approved Central GST and State draft laws.

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.

http://www.gstindia.com/gst-council-meet-no-consensus-on-dual-control-issue/