Telangana, Centre arrive at GST sharing formula

Remove term: GST: Government looks at mechanism to ensure traders issue bills GST: Government looks at mechanism to ensure traders issue bills

The Telangana government has reached an agreement with the Centre over the purview of traders in the state who have registered for GST. Of the total 1.83 lakh GST registered traders in the state, 1.50 lakh will come under the purview of the state government and the remaining 33,000 under the Centre.

According to the formula, the Telangana commercial tax department will monitor tax-related issues of 1.50 lakh traders while the Central excise department will look into the issues of 33,000 other traders.

In all, some 2.50 lakh traders had registered for GST in Telangana. Of these, 1.60 lakh migrated from VAT to GST, while 90,000 were new registrations.
As per the GST norms, 90 per cent of the traders with a turnover of less than Rs 1.50 crore per year are to be monitored by states and 10 per cent by the Centre. As for traders having turnover of more than Rs1.50 crore, the states and the Centre have a purview shared in the ratio of 50:50.

For this reason, only 1.83 lakh were considered for sharing between the state and the Centre out of the 2.50 lakh registered traders. About 36,830 traders out of these have a turnover of over Rs1.50 crore. The Centre was allotted 18,414 traders and the state got 18,416 traders under its purview.

Source:https://www.deccanchronicle.com/nation/current-affairs/080118/telangana-centre-arrive-at-gst-sharing-formula.html

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