GST deadlock continues over high sea taxes

TIL Desk Business/New Delhi/ 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 well as try to reach a finality on taxation of territorial waters. “The IGST law, having 11 chapters, was discussed today.

“Conventionally service tax and customs are charged by Government of India in those areas. Some states had, as far as 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.