Finance Minister Arun Jaitley postpones GST rollout to July 1

Finance Minister Arun Jaitley on Monday announced that Goods and Service Tax will be rolled out on July 1 and not on April 1 as planned because of unresolved disputes between the centre and states over taxation powers.

Finance Minister Arun Jaitley postpones GST rollout to July 1

Union Finance Minister Arun Jaitley on Monday announced that Goods and Service Tax will be rolled out on July 1 and not on April 1 as planned because of unresolved disputes between the centre and states over taxation powers.

"I am trying my best (on deadline of April 1). There was a broad view that July 1 appears to be a more realistic date for the implementation,” Jaitley said at a press briefing after

the GST council meet in Delhi.

The Finance Minister said there were agreements on some other issues, including an agreement that integrated GST (law) will be mutually empowerment model. Also, territorial waters, taxation powers will be delegated to the states.

The Council has been deadlocked for the fifth meeting in a row, with states seeking sole powers to control assessees with an annual turnover of up to Rs 1.5 crore.

The Centre, however, is not in favour of a horizontal split as it feels states do not have the expertise to administer levies like service tax.

"GST turnover of above Rs 1.5 crore will be assessed in the ratio of 50:50 by States and Centre," Jaitley said.

All Ministers present at the meet agreed to proposal except West Bengal Minister who disagreed to limited division of assessment for turnover below Rs 1.5 crore, Jaitley informed.

Next GST Council meeting on February 18 will now approve drafts of supplementary legislations.

The Council, in its previous meeting, had agreed on most of the clauses of the draft IGST law, which along with central GST (CGST) and state GST (SGST) have to be passed by Parliament and state legislatures, respectively, before the new indirect tax regime can be rolled out.