Council decides manner to distribute assessees

Council decides manner to distribute assessees

After deciding the basic principle of division of assessess between central and state tax authorities, the goods and services tax (GST) council has stated how this would be done. Earlier, the GST council had decided a state would have control over 90 % of GST payer where turnover of businesses was up to Rs 1.5 crore a year. over that figure, the state and central officials were to have 50:50 control.The division to be done by computer at the state level,by random choice.

 

Now,it has been decided that for those registered under value-added tax(VAT) or both VAT and central excise, their state turnover,including interstate transactions, will be taken into account.for those registeresd only under central excise and not VAT,the annual turnover given in central excise returns will be taken into account.

 

Those registered under VAT and sevice tax will be considered on the turnover given  in the returns for both, the overlape being excluded . For those registered  in only service tax, their turnover in these returns will be taken service tax, their turnover in these returns will be taken for the division. Pratik Jain of consultants

PWC says large companies with a national presence,particularly in service sectors like banking and telecom, would like the centre to administer them , at least to begin with."However, one would expect consistency in appoarch  of central and state authorities in tax administration , as the central and state GST laws are almost similars," he says."

 

The Business Standard, New Delhi, 22th September 2017