Weekly Current Affairs

Notice

GST stalemate resolved, rollout deferred to July 1

  • The Goods and Services Tax (GST) Council arrived at a consensus on contentious issues such as administrative control over tax payers in the new indirect tax regime, thus paving the way for GST to be introduced this year, although three months after Centre’s original rollout deadline of April 1, 2017.
  • Since it is a transactional tax, it can be introduced anytime.
  • As per the formula for dual control of assessees, 90 per cent of those with a GST turnover of Rs. 1.5 crore or less will be assessed for the purposes of scrutiny and audit by the States, and 10 per cent by the administrative machinery of the Centre.
  • Those above a turnover of Rs. 1.5 crore would be assessed in the ratio of 50:50 between the Centre and the States.
  • While the power to levy and collect the Interstate GST (IGST) will lie with the Central government, a special provision would cross-empower the States in the same ratio agreed upon for tax assessees.
  • As far as the area of 12 nautical miles into the territorial waters is concerned, it’s a part of the Centre’s territory. But as per convention, the States will be empowered to collect tax on any economic activity there.