Centre Against Low GST Threshold; Wants A Fresh Look

While the Centre is of the view that the threshold for levying Central GST (C-GST) and the State GST (S-GST) be kept at annual turnover of Rs 25 lakh, some smaller states want it to be at Rs 10 lakh.

The Empowered Committee, however, is in favour of keeping the limit at lower level, meaning that any business establishment with an annual turnover of Rs 10 lakh will come under the ambit of the Goods and Services Tax (GST).

The GST will subsume indirect taxes like excise duty and service tax at the central level and VAT on the states front, besides local levies.

The GST Constitutional Amendment Bill, which was introduced in the Lok Sabha in 2011, had lapsed and the NDA government will be required to come up with a fresh bill.

The Empowered Committee also reviewed the revenue neutral rate for the GST, comprising C-GST and S-GST, as suggested by a GST sub-committee.

A sub-panel on GST has suggested that that revenue neutral GST rate be pegged at about 27 per cent, with the C-GST at 12.77 per cent and S-GST at 13.91 per cent.

The NDA government is likely to introduce the GST Bill in the ensuing Winter session of Parliament, beginning November 24.

READ MORE: India-U.S. Agreement On Food Stockpiling Welcomed and 3 India-Born CEOs On Fortune Business Person Of The Year List