GST Exemption Threshold
Threshold limit to be set at Rs. 20 lakh per annum. In respect of north eastern and hilly states the limit to be set at Rs. 10 lakh per annum.
The threshold for availing the Composition scheme would be Rs.50 lakhs. Service providers would be kept out of the Composition scheme Compensation Norms of states
The compensation law and draft compensation formula for states would be decided subsequently. The base year for calculating compensation for states would be FY 2015-16. Dual Control & Assessment of Assesses
Assessees having turnover below Rs. 1.5 Cr to be assessed by state officials and those above Rs. 1.5 Cr to be assessed by officials of the state as well as the centre. 1.1 million service tax assesses will continue to be assessed by the officials of the centre.
30th September 2016
Approve GST Draft Rules and Formats
Approval of the Draft GST Rules on Registration; Payment; Return; Refund and Invoice, Debit & Credit Notes with the understanding that minor changes may be permitted with the approval of the Chairperson, if required, due to suggestions from the stakeholders or from the Law Department. Compensation to states
To compensate States for 5 years for loss of revenue due to implementation of GST, the base year for the revenue of the State would be 2015-16 and a fixed growth rate of 14% will be applied to it Existing Exemptions
All entities exempted from payment of indirect tax under any existing tax incentive scheme would pay tax in the GST regime and the decision to continue with any incentive scheme shall be with the concerned State or Central Government. In case any State Government or Central Government decides to continue any existing exemption/incentive scheme, it will be administered by way of a reimbursement mechanism.
17h October 2016 to 19th October 2016
GST Rates and slabs were proposed.
Also, the formula for the Centre compensating loss of revenue to states, 3-4 alternatives were discussed, but a decision could not be reached.
3rd November 2016 to 4th November 2016
GST Rates and slabs decided
Bands of rates of goods under GST shall be 5%, 12%, 18% and 28% and in addition there would be a category of exempt goods. Further, a cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the rate of 28% for payment of compensation to the States
2nd December 2016 to 3rd December 2016
The meeting turned out to be inconclusive, as the impasse over the issue of assessee jurisdiction continued.
11th December 2016
The Council had a detailed discussion on the Model CGST and SGST legislation (Model GST Law) which was released in the public domain on 26 November 2016. The council deliberated upto section 99 of the Model GST Law out of the 197 sections.
22nd December 2016 to 23 December 2016
Members debated over the provisions of the draft Central/state legislation three legislations mentioned above and parked the contentious issue of cross-empowerment for the second day. Finally, by the end of the meeting, the council reached a broad consensus on the draft of Central and state GST Legislations.
03rd January 2017 to 4th January 2017
• No consensus has been achieved on ‘Dual Control’.
• States demanded taxation rights for sales made in the high seas (within 12 nautical miles). Furthermore, the states requested the GST Council to increase the number of items on which this new Cess is to be levied. The Cess has been additionally proposed to compensate the states for their revenue loss (estimated at INR 900 billion).
• Accordingly, the GST Council assured that the Cess will be levied on a list of commodities notified by the GST Council. At the end of year five, this Cess will be merged with the GST rate or divided between the Centre and states, as the Council decides.
16th January 2017
Dual Control of Center and State Government in GST Assessment
Under the proposed tax regime, 90% of all assessees with a turnover of Rs 1.5 crore or less will be assessed for scrutiny and audit by state authorities, the remaining 10% by the Centre. Assessees with a turnover above Rs 1.5 crore , Centre and states will assess in a 50:50 ratio Resolving of IGST Dispute under GST
Any IGST disputes among states will be resolved by the Centre. Taxation Rights under GST in Territorial waters extending to 12 nautical miles
Territorial waters extending to 12 nautical miles fall under control of the union government but as per convention, states will be empowered to collect tax on any economic activity in this zone.
18th February 2017
• Formally approved Compensation law.
• Some of the issues in CGST/SGT/IGST laws were discussed, final version of law (CGST/SGST/IGST)shall come on next meeting 4th & 5th March
4th March 2017
• The council cleared the crucial CGST and IGST Bills.
• Hotels with annual turnover of less than 50 lakhs, will pay the lowest tax rate of 5% under the GST regime.
• The assignment of tax slabs for different categories of goods and services will be taken for redressal in the next GST council meeting
16th March 2017
• State GST Bill and Union Territory Bill have been given approval by the Council.
• The Council also approved the bound rate of 15% as peak rate for the proposed Cess to be levied on certain demerit goods.
• The bound rate for aerated drinks and luxury car has been kept at 15% while the same will be 135% for the pan masala. For tobacco it is going to be 290 per cent or Rs 4170 per 1000 sticks.
• The Council also gave its nod for formation of a Committee to look into the issues of Meta Permit to be given for the movement of goods laden trucks in the GST regime.
• Formal approval to all the five legislations has been given by the Council.
• The five draft laws will be sent to the cabinet for approval and subsequently to Parliament.
31st March, 2017
• Discussed four set of rules–GST input tax credit rules, valuation rules, transitional provisions and composition rules.
• Approved rules on registration, return, payment, refund, invoice, debit and credit.
18th May, 2017
• Approved GST rates for goods and GST Compensation Cess.
• fitment of rates of goods were discussed during the Council meeting.
3rd June, 2017
• Council cleared the pending rules, including transition provisions and returns.
• All the states agreeing to a July 1 rollout of the new tax regime.
11th June 2017
• Council revised 66 items rates out of 133 representations. to know the details CLICK HERE