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. On the issue of dual control, it has been decided that businesses with an annual turnover of up to Rs. 1.5 crore will be assessed by the States.
For those above the threshold, there will be an element of dual control and they will be assessed either by the Centre or States based on a formula for risk assessment. Meanwhile the 11 lakh existing service tax assesses will be assessed by the Centre and State officials after training will begin to help assess future assesses. 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.
Credits The Hindu Business Line