GST council reaches 'broad consensus' on CGST, uncertainty over dual control remains

The all powerful GST Council on Thursday reached a "broad consensus" on the CGST law, but uncertainty remains on the vexed issue of jurisdiction over assessees under the proposed Goods and Services Tax (GST) regime.

On the first day of the two-day meeting of state finance ministers chaired by Union Finance Minister Arun Jaitley cleared most of 197 clauses of the CGST. It is the seventh meeting of the Council. "Four-five" issues are left as they require more discussions that have been flagged, sources said. On Friday, the Council would take up the contentious issue of cross empowerment of Centre and states to avoid dual control over assessees in the new indirect tax regime. Sources further said the IGST which also deals with jurisdiction over tax assessees would be discussed tomorrow.

They said the issue requires more discussion as there is diversion of opinion between states and Centre as who will tax which set of assessees. The GST Compensation law is also scheduled for tomorrow. The Empowered Committee of State Finance Ministers, which met after the Council meeting, approved proceedings of the day. Parliament has amended the Constitution for the introduction of GST, which seeks to subsume various state and central levies.

However, as consensus eluded in the earlier meetings of the Council, the subsequent GST legislations -- CGST, IGST and compensation law -- could not be introduced in the Winter session of Parliament. This has threatened the April 2017 roll out target of the GST. Due to Constitutional requirements, the new indirect tax regime has to be implemented by September 2017.