The council will again meet during January 3-4 to hammer out an agreement on the issue of dual control or "cross-empowerment".
India’s plans for country-wide Goods and Services Tax (GST) took a small step forward with a consensus on two enabling legislations reached on Friday, although the issue of "dual control" to divide assessing powers between the Centre and the states continues to remain unresolved.
The finance minister Arun Jaitley-headed GST council finalised the drafts of the two main supplementary legislations—the Central GST Bill and the State GST Bill—in its meeting on Friday.
The council will again meet during January 3-4, to hammer out an agreement on the issue of dual control or "cross-empowerment”.
The original deadline to roll-out GST from April 1, 2017 appears increasingly unlikely. “Our effort is to make it early as possible,” Jaitley said.
“The primary drafts of CGST and SGST laws have been approved,” Jaitley told reporters after the two-day meeting.
“The legally vetted copy of the drafts will be circulated to all the states,” the finance minister said.
Under GST, the states and the Centre will collect identical rates of taxes on goods and services. For instance, if 18 percent is the GST rate on a good, the states and the Centre will get 9 percent each called the CGST and SGST rates.
The Centre will also levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services.
The IGST mechanism has been designed to ensure seamless flow of input tax credit from one state to another. States also want control over administering the IGST mechanism. The union law ministry, however, is of the view that only the Centre should have administrative authority over IGST.
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