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GST Council agrees on five areas, differs on one

The Centre and states today disagreed on decisions reached at the first meeting of the GST Council on service tax assessment although they reached a consensus on area based exemption in the new tax regime. 
●    The second meeting of the all-powerful GST Council, headed by Finance Minister Arun Jaitley, agreed on five subordinate legislations dealing with issues ranging from registration to invoicing under the new Goods and Service Tax (GST) regime. 
●    It also agreed on the treatment of exemption from GST. 
●    Currently, the Centre gives exemption to 11 states mostly in North East and hilly regions from excise duty as also many states give the same as incentive for setting up industry. 
●    The council decided that under GST, which will subsume excise duty and VAT among other levies, taxes will have to be collected and it can be reimbursed from the annual budgets to the exempted categories. 
●    The second meeting of the GST Council finalised rules for registration, rules for payments, returns, refunds and invoices. 
●    With this as many as 6 issues have been settled by the Council, that has representatives of all the states, in two meetings in a span of one week.

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