GST: AP agrees for exemption
Hyderabad, Sept 23 (INN): Andhra Pradesh Finance Minister Yanamala Ramakrishnudu has agreed for a threshold of exemption of Rs 20 Lakhs as it would ensure that the small dealers need not get registered and pay tax under the Goods & Services Tax (GST) regime.
Speaking in the meeting of GST Council in New Delhi on Friday, the minister said that the exemption would benefit nearly 1.23 lakh dealers, which is almost 51% of the existing 2.43 Lakh dealers. However, he said that the government would have to forego tax revenue of Rs 146 Crores that is 1.4% of total revenues.
On the issue of compensation to be paid for the revenue losses to the states on account of introduction of GST, the Minister said that average of the three best years' growth rates in the last five years, from base year 2015-16, should be taken for estimating the revenues and the compensation to be paid for any loss of revenues. This is in tune with the compensation formula adopted while introducing VAT in 2005.
The Minister stated that compensation for any loss of revenues to the states during GST regime should be paid every quarter along with the devolution of funds made by the Centre to the states. This ensures that state's ways and means are not affected.
On the issue of Dual Control, the Minister emphasised that single interface should be there to the tax payer. He also expressed that the small tax payers with turnovers less than Rs. 1.50 Crores should be in the exclusive jurisdiction of the State Government.
As there were divergent views of Centre and States, the Chairman, GST Council suggested a compromise formula for tax payers with less than Rs 1.50 Crores. As per this, the states would have jurisdiction over all tax payers except service tax payers in this category
Regarding tax payers with turnover of Rs 1.50 Crores and above, there will be cross empowerment between the Central Government and State Government authorities, so that the tax payer will have interface with only one authority either centre or state. The modalities will be worked out by the subcommittee of officers of states and centre.
News Posted: 23 September, 2016
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