Informal meeting called by Finance Minister Arun Jaitley to resolve administration issues under GST did not go per plan and stand off between Centre and State continues.
Jaitley had called a meeting with State finance ministers to arrive at a common ground on how Centre and states will control assessees under the new regime that will subsume an array of taxes like excise duty and service tax as well as VAT, multiple ministers participating in the meeting said.
States are demanding exclusive control over assessees of Rs 1.5 crore and below for both goods and services. “Centre is agreeable on goods, but is not yielding on services. States are looking at their interest to safeguard their revenue. Centre will have to yield to states to get the CGST and IGST bills passed. A middle ground on the issue has to be worked out politically,” Uttarakhand finance minister Indira Hridayesh said.
A common ground is a must before centre proceeds to pass CGST and IGST Bill in Parliament.