The two-day meeting of the newly-constituted GST Council comprising the Union Finance Minister, Union Minister of State for Finance and the state Finance Ministers has concluded.
Based on the proceedings of the meeting, the announcements made by the Union Finance Minister are as follows:
Exemption threshold for GST has been fixed at Rs 20 lakh for all states except the North-Eastern states and other small states. For these states, the exemption threshold has been fixed at Rs 10 lakh.
State authorities will assess the taxpayers with annual turnover not exceeding Rs 1.5 crore.
For annual turnover above Rs 1.5 crore, the taxpayers will be cross-examined either by the Central or state authorities on the basis of risk assessment.
The Centre will continue to assess the existing service tax assessees irrespective of their annual turnover, till the state officers are trained for the same. However, new assessees who would be added to the list shall be divided between the Centre and states.
The Council has also agreed that all cesses shall be subsumed in the GST.
The Union Finance Minister further announced that the GST Council shall try and finalise the tax rate and slabs in the meeting to be held from 17 October 2016 to 19 October 2016.
The GST Council will also schedule a meeting on 30 September 2016 to finalise and approve the draft rules of GST and the area-based exemptions.