GST Council meet concludes with no consensus on dual control

The GST Council in its concluding two-day meet has reached a stalemate on dual control between Centre and states. With no consensus being reached in the all-crucial meet, the implementation of the Goods & Service Tax (GST) Bill on April 1 looks impossible. The states have been demanding a compensation of Rs 55,000 crore in case of any losses. Sources say that the states will seek to have control over taxes on income below the Rs 1.5 crore threshold. The center is pitching for control over services. Demonetisation’s shadow loomed large over Goods and Services Tax (GST) roll-out discussions as states struck a hard bargain on Tuesday demanding extra compensation to offset tax revenue losses in wake of the currency culling move. Fresh roadblocks also emerged on products moving in high seas, with coastal states demanding taxation rights over goods transported within 12 nautical miles of their respective geographical territories.Many states are now pushing the Centre for a grand bargain of sorts, seeking higher compensation for revenue loss on account of demonetisation. States have argued that the economy-wide cash-crunch following the unexpected ban on Rs 500 and Rs 1000 currency notes in November has hurt their revenues.The Kerala FM Thomas Issac addressing the media said that he doens't expect the rollout before September.Watch video for more...