State finance ministers today failed to iron out certain minor differences over the proposed Goods and Services Tax (GST), days before start of a crucial session of Parliament that has to pass a law for the new regime to come into force from April next year.
The Empowered Committee of State Finance Ministers did not discuss the GST rate but referred to a sub-committee the issue of threshold below which small businesses would be exempted from the new levy.
Delhi Deputy Chief Minister Manish Sisodia, who chaired today’s meeting, said the states were “divided” over the threshold.
While the Centre is of the view that threshold for levying central GST (C-GST) and state GST (S-GST) be kept at an annual turnover of Rs 25 lakh, some small states want it to be at Rs 10 lakh.
“Some states are adamant that it should be Rs 10 lakh. Some others said it should be increased because inspector raj will increase if small traders come under GST… So, we thought that we should collect data from all states,” Sisodia said. (AGENCIES)