Business having Annual Turnover of 20 lakhs are out of the Tax net: GST Council sets the Threshold limit

GST Council

After the first meeting, the Goods and Services Tax Council has fixed the threshold limit of 20 lakhs in case of businesses all over India. However, the business in north-east region will get exemption if the annual turnover is below 10 lakh. The Council is headed by the Union Finance Minister, Arun Jaitley, who confirmed the news to the reporters on Friday. The meeting further clarified that all cesses will be subsumed in the GST.

Reportedly, the meeting further reached at a consensus on the issue of administrative control of the Central and State in the GST regime.

States would have sole jurisdiction over assessees (currently in the Value Added Tax (VAT) net at present) having a turnover of Rs.1.5 crore or less, while the administrative control of businesses with a turnover exceeding that limit would be jointly with the central and state governments, Mr. Jaitley said. As pointed out by him, there would be cross examination either by officers from the Centre or state to aviod dual control.

However, the present11 lakh service tax assessees will be continued to be under the control of the Cent. New assessees would be divided between the Centre and states.

The next meeting has been scheduled to 30th of September to finalize the draft rules on GST rate, rules on granting exemption and tax slabs.

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