States for common exemption list under GST
Mussoorie: Seeking speedy implementation of GST, State Finance Ministers on Friday pitched for a common exemption list for goods and services so that fewer number of items remain outside the indirect tax net.
"As of now, the exempt list of states contains 96 items whereas the Centre's list has 243 items. The empowered panel has arrived at a consensus that 12 of the 96 items contained in the States list on which the Centre levies taxes be exempted from central taxes," Chairman of the Empowered Committee of State Finance Ministers Sushil Kumar Modi told reporters here.
States also asked the Centre to prune its exemption list in a phased manner to match it with that of States.
Modi said the Empowered Committee has arrived at a consensus that there should be no dichotomy between the exempt list of States and that of the Centre.
The State Finance Ministers have gathered here for a two-day meet to sort out complex issues such as tax rates and exemptions under the proposed indirect tax regime.
The Committee also decided to increase the threshold limit for registration under GST for small traders, Modi said. The details would be worked out, he added.
The Committee has recommended increasing the threshold limit to Rs 25 lakh turnover, but a consensus regarding this is yet to be reached as many States are yet to study the implications.
The State Finance Ministers also recommended traders with a turnover of less than Rs 1.5 crore be exempted from dual control which leads to tax overburden. They suggested that only those with a turnover of over Rs 1.5 crore be kept under the tax levying agencies of both Centre and states.
A Constitution amendment bill to give affect to GST is pending in Parliament. Both the Centre and state governments are engaged in negotiations for early implementation of GST which will subsume most of the indirect taxes, like sales tax.