NEW DELHI: The central government and states on Monday reached a consensus on sharing powers for control over taxpayers under Goods and Services Tax (GST), but the new indirect tax regime will now be rolled out from 1 July instead of previously planned 1 April.

The consensus was reached after the centre agreed to the demand of states to go in for horizontal split with regard to tax payers based on annual turnover. According to the decision reached at the 9th meeting of all-powerful GST Council, states will have powers to assess and administer 90% of the tax payers under Rs 1.5 crore annual turnover while the remaining would be controlled by the centre.

For tax payers with more than Rs 1.5 crore turnover, states and the centre will control and administer them in 50:50 ratio. Finance minister Arun Jaitley, briefing reporters about the decisions taken at the meeting, said states would also have the powers to levy tax on economic activity within 12 nautical miles of territorial waters even though such rights Constitutionally vest with the centre.

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