The Goods and Services Tax (GST) council on Monday set GST roll out for July 1, instead of April 1 deadline which was earlier planned, due to dispute between center and state over taxation powers, said Finance Miniter Arun Jaitley.

The GST now supersedes a jumble of complicated levies and makes a unified market. The GST Council comprising Finance Minister Arun Jaitley with his counterparts from other states, convened yesterday (16 Jan 2017) and agreed that the April 1 deadline has been rendered unfeasible.

Against the previous proposals of reserving administration of assesses up to Rs. 1.5 crore in annual turnover for states, or of exercising the Center and states to mutually administer these, the GST Council decided to combine the two suggestions. The entire tax base would be shared between the Center and states in a predetermined ratio, Arun Jaitley, the chairman of the GST Council, said while addressing a press meeting after the GST meet.

The Center agreed the states would have the authority to administer 90% of assesses with an annual turnover of up to Rs 1.5 crore. The Center will have the powers to audit, send notices and inspect the remaining 10%.

Late last year, the GST Council decided that the new sales tax will implement in four slabs. The tax rates will range from 5 to 28%, with 12% and 18% as standard rates. The new tax further includes a separate central cess that will be levied on luxury cars, tobacco products, and aerated drinks, charged on top of the 28% tax bracket. The central cess will remain in place primarily for five years and its proceeds would be utilized to compensate states for revenue losses following the GST's implementation.