New Delhi, January 17

India’s most important tax reform in decades will rollout on July 1 and not April 1 as planned because of unresolved disputes between the centre and states over taxation powers, Finance Minister Arun Jaitley said on Monday. However, he added that the contentious issue of dual control was resolved at the meet.

The GST Council meeting, chaired by Arun Jaitley, met on Monday and agreed that the April 1 deadline has been rendered unfeasible as they could not find a solution to the problem between Centre and states on taxation powers.

The GST Council will meet again on February 18.


States are demanding full powers over taxes of the companies with Rs 1.5 crore annual turnover. Though the Centre is not favourbale on this issue, states will have 90 per cent powers while the Centre will have 10 per cent, said Arun Jaitley. Those with a turnover of more than Rs 1.5 crores will be divided equally between the centre and states.

But States like West Bengal have been arguing saying that they will be losing heavily on revenues specially now as the demonitization has affected them hugely and that they needed to be compensated for it up to 5 years.

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