GST council clears registration rules

The Goods and Service Tax (GST) Council in its second meeting on Friday agreed on five set of draft rules including those for registration, payment, refund, returns and invoices under the new GST regime.

It was also decided that under the GST system, everybody will have to pay tax but those exempted would be later on reimbursed. “So you will have the GST system in operation where everybody has to pay the tax but if you are an exempted entity and the state or Centre decides to continue that exempted entity then they would be entitled to that amount being given back to them,” said Finance minister Arun Jaitley.

GST Council to meet on October 18-20 to decide on all important issue of tax rate.

However, Centre and states disagreed on decisions reached at the first meeting of the GST Council on service tax assessment.

There were divisions over approving the minutes of the first meeting of the Council, held last week, after at least two states disagreed with what was documented as decided on the Centre’s assessing 11 lakh service tax filers in the new dispensation.

In the last meeting it was decided that states will have exclusive control over dealers having revenue under Rs 1.5 crore in a year.

Those with turnover of over Rs 1.5 crore would be cross examined either by officers from the Centre or state to avoid dual control.

However, the power for assessment of 11 lakh service tax assessees who are currently assessed by Centre, would remain with it.

New assessees which would be added to the list would be divided between the Centre and states.

“Obviously the first item has to be approval of minutes of the last meeting. With regard to one item recorded in the minutes with regard to the service tax assessments in the new dispensation, there was a long discussion on the interpretation on the decision taken in the last meeting and that discussion consumed a lot of time today. That discussion was inconclusive and therefore it will continue in the next meeting on 18th (October),” said Mr Jaitley.