The GST Council on Friday said businesses with an annual turnover of less than R20 lakh will be exempt from the goods and services tax (GST). The threshold will be R10 lakh in the north-eastern and hill states.
“All decisions today were on consensus, there was no need of any voting,” Jaitley said. “All items including cess would be included in GST,” he added.
At the end of the first meeting, the Council headed by finance minister Arun Jaitley also decided that state authorities will have jurisdiction over assessees with annual turnover of less than R1.5 crore. For those with turnover of over R1.5 crore, there would be cross examination by officers from either states or the Centre to avoid dual control.
However, the power for assessment of 11 lakh service tax assessees, who are currently assessed by the Centre, would remain with it. New assessees would be divided between the Centre and states.
All state finance ministers are members of the GST Council.
