In a circular to all chief secretaries of states and principal commissioners of Central Tax, the GST Council secretariat laid down guidelines for division of taxpayers on the basis of their turnover to ensure single interface under the new indirect tax regime which was rolled out on July 1.
Accordingly, states will administer and control 90 per cent of the assessees below Rs 1.5 crore annual turnover, and the remaining 10 per cent coming under the Centre.
"The division of taxpayers in each state shall be done by computer at the state level based on stratified random sampling and could also take into account the geographical location and type of the taxpayers, as may be mutually agreed," the circular said.
Based on this division it would be decided whether a taxpayer would be assessed by Centre or by state.
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Besides, various methods are to be followed by tax officer for computation of turnover of businesses who were registered in the erstwhile excise, service tax or VAT regime.
"It is impossible to ascertain whether this will push more tax payers in the kitty of state governments or central governments," he said.
The GST Council secretariat said in the circular that state level committee comprising chief commissioner or commissioner of respective states and jurisdictional central tax commissioners are already in place for effective coordination between the Centre and states.
"The Committee may now take necessary steps for division of taxpayers in each state," it added.
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