GST deadlock continues over high sea taxes;FM hopes resolution
GST
Dated:- 5-1-2017
New Delhi, Jan 4 (PTI) Stalemate over GST continued with states hardening their positions on issues like territorial jurisdiction over high sea sales and control over tax assessees, even as Finance Minister Arun Jaitley hoped these matters would be resolved at the next GST Council meet.
While April 1 rollout schedule has long been ruled out, non-BJP ruled states put the new implementation schedule not before September. Jaitley was non-committal on the roll-out dates saying "we know the difficulty, we are moving against time".
The next meeting of the GST Council on January 16 would discuss the issue of jurisdiction over assessees as
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fishing business is concerned the Constitution provides for fishing rights to states in that area. Some states have been levying taxes in the nature of sales tax/VAT," he said
Jaitley said since states have been levying these taxes, they want to continue to levy them, but the contra argument is that high sea area strictly doesn't fall within the definition of state and as per Constitution is an Union Territory. This issue is currently before the Supreme Court.
"The case of states is we should be allowed to raise taxes. It is an issue on which Constitutional solution has to be followed and the solution has to be legally tenable… The issue is very close to resolution but we need a legal response to it, it has to be adequate
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