Goods and Services Tax Council (GST Council) headed by Finance Minister made some headway in its 2 day (seventh) meeting held on 22-23rd December.
The issues enlisted for seventh GST Council meeting included:
1. Discussion on CGST/GST Laws
2. Discussion on IGST Laws
3. Discussion on compensation formula
4. Discussion on Dual Control
In its two day meeting, GST Council has approved the primary draft of CGST/SGST Law and agreed on compensation formula. Arun Jaitley said “Primary draft of CGST and SGST law has been approved by GST Council today”.
He also added “Center Goods & Services Tax (CGST) and State Goods & Services Tax (SGST) will be a reflection of one another. States will be compensated 100 per cent loss for 5 years,” while announcing that the council has also approved Central GST and State draft laws.
On the compensation front, the GST Compensation Bill will provide a legal backing to the Centre’s promise to compensate the states if their revenue growth rate falls below 14% in the first five years of the GST roll out. The base year for calculating the revenue of a state has been decided as 2015-16.
While CGST/SGST Law and compensation area seems to have reached a stable ground, issues surrounding IGST Law and dual control remained untouched. They will be taken in next meeting on 3-4 January 2017.
FM Arun Jaitley said “Issues of IGST and Dual Empowerment will be taken up in next GST meeting on 3rd and 4th January”.
“In iGST, definition of territory of states is pending. And the division of authority between assessing authorities of Centre and states is pending. The two issues will be taken up together at the next meeting on January 3-4,” he added.