Hyderabad: The Government of India accepted the suggestion made by the Telangana government on collection of taxes under the new Goods and Services Tax (GST) regime.
Finance Minister Etela Rajender, who participated in the 9th GST Council meeting at Delhi on Monday, said the Telangana government earlier made representation for changes in tax collection. Accepting the proposal, Union Finance Minister Arun Jaitely agreed to give a freehand to the States. Under the new proposal the States are entitled to collect taxes for the turnover of Rs 1.5 crore. Of this, 90 percent will be utilised by the State and the rest will go to the Centre.
Tax collection for a turnover of above Rs 1.5 crore will be in the ratio of 50:50, said Rajender. He also sought exemption of tax levy on agriculture and its allied products and submitted a detailed representation to Jaitely.
Rajender further requested the Union Minister for levy of meager taxes on products used by common man. He wanted the losses suffered by States due to demonetisation to be compensated through GST.
“Due to lack of consensus on two to three issues, the implementation of the new tax system is deferred to July,” Rajender said. He also said another round of GST meeting will be held on February 18.
Though the Union Finance Ministry wanted this to be the last GST Council meeting, differences among the States led to another round of discussion along with the delay of the new tax system implementation.