Key announcements at GST conclave
Revenue Secretary Hasmukh Adhia on Tuesday chaired a GST conclave during which several key provisions in the tax reform legislation were explained.
Adhia said GST council is a federal, constitutional body with the power to make executive decisions.
It would comprise of Union Finance Minister as chairperson, a government MoS as vice chairman and all the finance/taxation ministers of states would be its members.
Following are the key announcement made following the meeting:
Key rules pertaining division of tax between Centre and states
- There would be four tax rates namely 5 %, 12%, 18% and 28%. Some goods and services would be exempt.
- Threshold limit for exemption to be Rs 20 lakh (Rs 10 lakh for special category states
- Cess over the peak rate 28 % on specified luxury and sin goods.
- To ensure single interface - all administrative control over
- 90 % of taxpayers having turnover below Rs 1.5 crore would vest with state tax administration.
-10 % of taxpayers having turnover below Rs 1.5 crore would vest with Central tax administration.
- Tax payers having turnover above Rs 1.5 crore would be equally divided between Centre and State.
Adhia said it would do away with separate taxes at multiple stages whether goods or services.
Once tax rates on services are decided, the fitment committee will meet again after a fortnight or so to decide on tax rates on goods before a full report of the panel is put up for consideration before the GST Council in its May 18-19 meeting in Srinagar.
Relation between various provisions in the GST
Adhia broke down GST components and explained in simple terms.
Features of Constitutional ammendment
Potable alcohol has been kept out of the purview of GST.
GST conclave in progress
Adhia and other officials at the GST conclave