GST Council falters on service tax control

Makes headway in area-based exemptions, approves procedural rules

A consensus reached between the Centre and states on administering 1.1 million service tax assessees in the first GST Council meeting was short-lived as it broke down on Friday. The high-powered body broadly resolved the issue of area-based exemptions and approved rules for registration and refunds under the proposed regime.

The other thorny issue of procedures for compensation to states in the event of loss because of switchover to the goods and services tax (GST) would be taken up at the next meeting, scheduled for October 18-20. The issue was to be taken up at the Friday meeting earlier.