New Delhi: The most important tax reform in decades will roll out in July and not April 1 as planned because of unresolved disputes between the centre and states over taxation powers.
The National Goods and Services Tax or GST replaces a jumble of complicated levies and creates one unified market. The GST Council, a decision-making body that combines Finance Minister Arun Jaitley with his counterparts from other states.
A major point of dispute has been who will assess -and therefore tax – businesses and entities with annual earnings of upto 1.5 crores. 90 per cent of this category will be handled by the states, and the rest by the centre, said Mr Jaitley today. Those with a turnover of more than 1.5 crores will be assessed.
Those above turnover 1.5 crores would be assessed in the ratio of 50:50 between centre and state.