Following the GST council meet on Monday, Finance Minister Arun Jaitley addressed the media and said that of all the assesses with GST turnover of Rs 1.5 crore or less, 90% would be assessed by the states and only 10% by the administrative machinery of the Centre.

Arun Jaitley added that the GST turnover of above Rs 1.5 crore would be assessed in the a ratio of 50:50 by both the state and the centre. (PTI)

Following the GST council meet on Monday, Finance Minister Arun Jaitley addressed the media and said that of all the assesses with GST turnover of Rs 1.5 crore or less, 90% would be assessed by the states and only 10% by the administrative machinery of the Centre. He added that the GST turnover of above Rs 1.5 crore would be assessed in the ratio of 50:50 by both the state and the centre.

Jaitley added that the power to levy and collect the Integrated Goods and Service Tax (IGST) would be with the centre but by special provision in law, states would be cross empowered in the same manner as the ratio mentioned. Jaitley added that the GST council had been able to arrive at the decision on dual control issue. However, the decision of assessment below Rs 1.5 crore divided in ratio of 90:10 was refused by the West Bengal Finance Minister, he added.

The Finance Minister while addressing a press conference said that the states would have power in territorial waters. He added that the GST council is to take up draft laws for approval in the next council meeting which happens to be on February 18. However, Kerala Finance Minister Thomas Isaac said that there was no agreement on how the taxes were to be administered. Isaac said that there was no agreement and the discussions were still on. He added that while some wanted vertical division of tax payers while others wanted a horizontal division of large traders. Although, he believed that some compromise would be worked out between the centre and the states. The council in its previous meeting had agreed on most of the clauses of the IGST which had be passed with the CGST and the SGST in the parliament and the state assemblies respectively before the new tax regime was rolled out.