New Delhi, Sep 23 (KNN) The Goods & Services Tax (GST) Council arrived at three important consensus after its second day of meeting - threshold limit at Rs 20 lakh; the draft compensation formula and the issue of dual control.

The threshold has been fixed at Rs 20 lakh annual turnover which means that an entity having daily sales worth around Rs 5,500 would not come under the GST bracket. 

Businesses with an annual turnover of up to Rs. 10 lakh in the North East and hill states and Rs. 20 lakh in all other states will be exempt from GST, Finance Minister Arun Jaitley said on Friday after the meeting of the Council.

On the issue of dual control over assesses, it has been decided that now the state officials will have sole power over assesses up to Rs 1.5 crore of annual turnover in case of goods. In such cases, both the central and state officials would have jurisdiction. However, in case of services, both central and state officials will have power over assessees throughout.

While the exact compensation formula based on the revenue projection will be worked out, Jaitley said that all cesses will be considered under the compensation from the Centre. States have indicated that the compensation should be paid on regular – quarterly or bi-monthly intervals.

The next meeting of the GST Council will be on September 30 to discuss the draft guidelines and exemptions, Jaitley said.

The Council will have another round of meetings on October 17, 18 and 19 to finalise the crucial rates and slabs for GST. (KNN Bureau)