By TIOL News Service

UDAIPUR, FEB 18, 2017: AT its 10th meeting here the GST Council was not expected to take a giant leap forward except for formally vetting the Draft Compensation Bill - a Bill of minimum 'Fuss Index'. As regards the GST Model Laws, since many other key provisions were pending for discussions such as anti-profiteering, National Tribunal, definition of agriculturist and many more, the Council members spent quality time discussing the same.

Among many controversial issues, the key issues which were discussed today were the IGST provisions, 90:10 ratio for below Rs 1.5 Crore threshold and vesting powers in States to levy tax within 12 nautical miles in the territorial waters for Coastal States. As per the AP Finance Minsiter, Mr Yanamala Ramkrishnudu, the proposal to treat territorial waters as the territory of Union of India and to delegate the powers to states to collect tax by the central Government is not the correct way to draft it, particularly when the High Court already decided in favour of States and matter pending in the supreme court. The correct thing is to treat the territorial waters as the territory of state and to allocate powers to states not just to collect but also to levy ,collect and appropriate to the states. The chairman agreed to refer to Law Committee to examine it, added he.

On the issue of cross empowerment to state officers under IGST Act, he said that the proposal to exclude state authorities to adjudicate cases if any issue relates to import or export of goods or services are involved is also contested. He has stated that the state authorities have been administering CST Act 1956 and assessing the genuineness of exports as it involves refund of taxes paid at input stage.

Similarly under IGS Act also, he has demanded that the state authorities have to be empowered to ascertain the genuineness of Export transactions as it involves huge amounts of refund of taxes paid at the earlier stages. The Chairman, GST Council agreed to refer it to Law committee and to take decision in the next meeting.

What also kicked up a fuss among the Opposition-ruled States are the minutes of the previous meeting where it was stated that some States may negotiate with the Centre for control over the assessees below Rs 1.5 Crore threshold. Since the BJP-ruled States have not insisted on 90:10 ratio the Centre wanted to enter into different understanding with different States. But, the Opposition-ruled States demanded that such a minute being guillotined immediately as it was not decided at the 9th meeting.