Andhra Pradesh Finance Minister Yanamala Ramakrishnudu on Thursday lashed out at the Centre and alleged that the Goods and Services Tax (GST) Council was taking decisions unilaterally, without consulting state governments.
Speaking to reporters after the 32nd meeting of the GST Council, Ramakrishnudu said, "States have issues particularly related to exemptions and reductions in rates of taxes, some of which are not at all discussed, even though several letters are sent to the Council. I demand that henceforth agenda items to be fixed taking into consideration the requests of the states also."
Requesting the Centre to compensate for the revenue loss incurred by states, the senior Telugu Desam Party (TDP) leader also said that Andhra Pradesh was expected to get about Rs 100 crore.
In a major relief for MSMEs and small businesses, the GST Council on Thursday doubled the exemption threshold from Rs 20 lakh to Rs 40 lakh and raised the limit for availing the composition scheme to Rs 1.5 crore from the present level of Rs. one crore.
Till now, businesses, most of them micro, small and medium enterprises (MSMEs), with a turnover up to Rs 20 lakh were exempt from paying Goods and Services Tax (GST). The revised limits will be applicable from April 1.
Announcing the decisions after the GST Council meeting in New Delhi, union Finance Minister Arun Jaitley also ruled out any further cuts in tax rates and said "reductions will be made only when revenues move up".
The GST Council also decided to set up a seven-member GoM on real estate and another on lotteries and issues related to them.
Jaitley said there were diverse opinions on the issues and since all decisions in the Council are taken through consensus, it was decided to delve deeper into the issues.
He said while there was no deadline for the two GoMs, whose members would be announced, they were expected to submit their reports before the next Council meeting.