Finance Minister Arun Jaitley Addresses The Media On GST: Highlights

New Delhi: Union Finance Minister Arun Jaitley addressed the media after holding pre-budget consultations with state finance ministers. Here are the highlights:

• Made detailed presentations with regard to their sectors before the GST council.
• A person can sit and make a digital transaction in one state, his account may be in another state, the transaction can be registered in a third state.
• They said there should a central system, so that share of taxation could be split up.
• IGST law was discussed, it has 11 chapters.
• Some issues remain open, in the process of being discussed.
• Will be meeting on 16th of this month.
• Drafts with the gaps are being sent for legal vetting.
• Gaps predominantly refer to issues under 2 big heads: definition of territory; and cross empowerment and dual control.
• Issue of territory is complex. Area within 12 nautical miles part of Indian territory, whose territory is it.
• Some states have fishing rights in that area.
• Customs and service tax charged by Government of India. What about other taxes?
• This issue is currently before the Supreme Court.
• It's a issue to which a constitutional solution has to be followed and has to be legally tenable.
• The minister of Karnataka has suggested a formulation which we will consider.
• Issue is close to a solution but it has to be adequately tested.