GST Council to discuss 3 critical issues on Thursday
The newly formed Goods and Services Tax (GST) council will meet for the very first time tomorrow.
With the Union Finance Minister as the Chairperson, this panel of State Finance Ministers and some top officials from the Finance Ministry will have the task of finalising the entire roadmap for the GST rollout.
There panel will be discussing three critical issues at the first meeting – dual control; the GST threshold and the compensation mechanism, reports CNBC-TV18’s Sapna Das.
On the issue of dual control, it is understood that the states are opposed to any concept of dual control up to an annual revenue number of Rs 1.5 crore.
On the GST threshold front, it is given to understand the Centre has been pushing for an Rs 25 lakh annual threshold for GST from the time it should kick in. However, some states have a much lower limit of Rs 10 lakh. So, there is possibility a consensus agreement of threshold of Rs 25 lakh.
With regards to the compensation mechanism, the formula and the base year will have to be decided; the year from which year the calculation will have to be made. It is likely that there will be separate law on compensation under GST.
Some other interesting issues like GST rate, as well as discussions on the GST exemptions are not on the Council’s agenda but the end call on whether to discuss the issues depends on the Chairperson.
With regards to voting, the attempt would be to strike a consensus and at least three-fourth of the members will have to be on board on any decision to be taken.
The Council will also take a decision on the rules for conduct of business of the Council.
Also, a Vice Chairman may also be voted in. Amit Mitra, who heads the GST committee of the State Finance Ministers, is a favorite. But he cannot be eligible for the position of VC unless West Bengal clears the Constitutional Amendment Bill