Highlights of 3rd GST Council Meeting dated 18th & 19th October 2016

Looking for the updates of the 3rd GST Council Meeting? Here are the most important ones;

The third meeting of the GST Council was held on 18-19 October 2016 at Vigyan Bhawan, New Delhi. The Hon’ble Union Finance Minister, Shri Arun Jaitley was on chair. The 3rd GST meeting was considered to be a crucial one because the government fixed the deadline for the roll out of GST on 1st April, 2017.

The agenda mainly discussed during the meeting was the tax rate, compensation formula and assessment of persons registered under service tax.

Compensation to the states:

Out of the five years, two outliers are left out and an average is taken. If the revenue under GST is short of this, then states would be compensated. And for this ITC reversals shall be included in the definition of ‘revenue subsumed’ for the base year 2015-16 for the calculation of compensation to the States for any loss of revenue owing to the implementation of GST for five years.

Provision for Cross-Empowerment to ensure Single Interface under GST:

The latest available data of the taxpayer base under VAT, Central Excise and Service Tax above and below the turnover of Rs. 1.5 crore and other relevant latest data may be shared with all the States however, The issue of cross-empowerment for single interface be taken up for further discussion in the Council’s next meeting.

Delegation of powers:

The existing committee of officers constituted by the Empowered Committee to look into GST Laws and Rules shall be redesignated as the Technical Committee of officers of the Council to look into GST Laws and Rules and to carry out other technical discussions. If more States wanted to join this Committee, it would be allowed and the interested States could register their request with the GST Council Secretariat.

GST rates and slabs discussion were taken place but the decision could not be made Therefore the discussion on the same, along with other pending issues, will now take place in the next meeting of the council scheduled on 3-4 November 2016.

Source: https://www.gstcouncil.gov.in

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