GST taxpayer division base between Center and States

GST council has prepared framework for division of taxpayer base between center and state. Division of Taxpayers in each state level will be done randomly by computer using random sampling that to ensure there is no selection or exclusion for some other reason.

Guidelines for division of tax payer base between Centre & State

Guidelines ensure that taxpayer faces only by one GST authority either Centre or State. Therefore list of taxpayers will be made public by adding this would be clear for not taxpayers but also for tax authorities. This division will also fix responsibility for raising awareness about GST with small traders falling within states jurisdiction.

As per rules, 90 per cent of assesses with turnover of less than Rs.1.5 crore will be under control of states administrative and balance 10 per cent will be under control of Centre. In the case of taxpayers with Rs 1.5 crore turnover divisions will be 50:50. Thus see How to find out fake GST bills in Market

But selection can take into consider geographical account and type of taxpayer may mutually agreed. Government has set up state-level committees of state and central officials who will forward the process of dividing taxpayers. Additionally, government will also pass notification to cross empower state and central tax officials.

Division turnover will be based on status of taxpayer before GST. In case those who registered under value added tax (VAT) and only total state annual turnover will consider under this tax on basis for division. For taxpayers registered under central excise will be consider relevant turnover. With this aim of council bring clarity and effectiveness in the administration of new tax indirect regime.

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