By Bizodisha Bureau, Bhubaneswar, September 24, 2016 : The Goods and Services Tax [GST] Council on Friday fixed annual turnover limit for exemption at Rs 20 lakh and resolved that all cesses will be subsumed in the GST.

For composition scheme the limit was fixed at Rs 50 lakh. Service Provider will be kept out of the composition scheme, according to a press release issued by the finance department here.

The central government plans to roll out the new indirect tax regime from April 1 and The maiden meeting of GST Council was held on 22nd and 23rd September, 2016.

While the next meeting of the Council on September 30 will finalise draft rules on granting exemptions, the GST rate and tax slabs would be decided at its three-day meeting beginning October 17.

At the end of the first meeting, the Council headed by Finance Minister Arun Jaitley decided that the state authorities will have jurisdiction over assesses with annual turnover of less than Rs 1.5 crore.

Those with turnover of over Rs 1.5 crore, there would be cross examination either by officers from the Centre or state to avoid dual control.

However, the power for assessment of 11 lakh service tax assesses who are currently assessed by Centre would remain with it. New assesses which would be added to the list would be divided between the Centre and states.

As per Constitution Amendment Act, the union government will provide compensation to the States for loss of revenue arising on account of implementation of GST for five years. GST Council will formulate the modalities for GST compensation.

The base year for GST compensation is 2015-16. Projected growth rate for GST compensation will be decided after detail deliberation, the release said saying that the state finance minister, Pradip Kumar Amat had raised these issues.

The base year for calculating compensation would be 2015-16 and the formula for payment of compensation would be deliberated between the state and Central authorities.

The officials will give a presentation with regard to the compensation formula which can be adopted at the next meeting of the Council on September 30.