All-Powerful GST Council Stumbled: No Agreement over Tax Administration

The stand-off over administration of GST continued today, with some states determined on their demand to control tax payers with up to Rs 1.5 crore turnovers.

Finance Minister Arun Jaitley headed the 9th meeting of the all-powerful GST Council failed to break the stalemate over distribution of powers between the Centre and states to manage the goods and services tax (GST), making April 1 the mark for its rollout all the more difficult.

Kerala Finance Minister T M Thomas Isaac told that there is no agreement as to how the taxes will be managed and the discussions in this regard are still going on. He added that "territorial waters, taxation powers will be delegated to the states."

It seems that states do not have the expertise to administer levies like service tax so the Centre is not in favour of a horizontal split. Thomas added, that Some people want vertical divisions (of tax payers) and others want horizontal division with vertical division of large traders.

GST needs to be rolled out latest by September 16, 2017 according to Mr Jaitley. Some of the existing levies will expire after September 16 under the Constitutional Amendment passed by Parliament.

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