There was “general consensus” on the issue of dual control over taxation structure between the Centre and states at the meeting of state finance ministers on GST, Empowered Committee Chairman Amit Mitra said today.
“The issue of dual control has been discussed and all the participants have spoken about it. The general consensus was that turnover below Rs 1.5 crore will be taxed by the states and beyond that by the Centre,” he said, adding that the meeting was historic.
However the matter would again be discussed at the next meeting in July, he said.
The other issue discussed at the meet, attended by Union Finance Minister Arun Jaitley and 22 other state finance ministers, was the revenue neutral rate (RNR).
“It will come up for discussion again in the next meeting to find out what is the optimal rate,” Mitra said.
While the panel of Chief Economic Advisor had suggested RNR of 17 per cent, National Institute of Public Finance and Policy put it at 26 per cent.
Delhi deputy chief minister Manish Sisodia said the discussion on the GST Council as held today would make it more powerful than the state assemblies which some FMs opposed.