VIJAYAWADA: Finance Minister Yanamala Ramakrishnudu took serious objection over the preparing the agenda of GST Council without consulting the States. Participating in the 32nd meeting of GST Council in New Delhi on Thursday, Yanamala said the States have issues particularly related to exemptions and reductions in rates of taxes, some of which are not all discussed, even though several letters are sent to the council.
He demanded that henceforth agenda items be fixed taking into consideration the requests of the states also. The finance ministers representing Karnataka, Kerala and Delhi supported the same.Stating that still there is an unsettled IGST amount to a tune of Rs 7,000 crore, he said the ad hoc settlement should also be done and released to the states without delay. Andhra Pradesh is likely to get about Rs 100 crore in such cases.
The minister said he had supported the proposal to increase in the turnover limit for composition levy from Rs 1 crore to Rs 1.50 crore and also the proposal of filing of annual return with quarterly payment in lieu of quarterly returns, as these proposals benefit small taxpayers by reducing the compliance burden.
On the issue of raising threshold of registration from Rs 20 lakh to Rs 40 lakh for taxpayers dealing in goods, the minister said he also supported the proposal as it will benefit the MSMEs, even though there will be a revenue loss to the State. Yanamala appealed the Centre to compensate the revenue loss of the states. On the proposal of extending composition facility to the service providers of turnover from Rs 20 lakh to Rs 50 lakh, he supported it as it benefits many small service providers from burden.