With finance minister Arun Jaitley believed to have given in to the demand of state governments that they be allowed exclusive administrative control over businesses with an annual turnover below `1.5 crore, it would appear the proposed goods and services tax (GST) is making headway.

Although Jaitley, who met with state finance ministers on Tuesday, did not make a formal statement, Amit Mitra, the West Bengal finance minister and the chairman of the empowered committee of state finance ministers, was hopeful the Centre would agree to the exclusive jurisdiction of states over traders and businesses with a turnover below `1.5 crore to save them from possible harassment.

“I am sure this will also be resolved… because this has to be resolved in order to roll out the GST,” Mitra said after the meeting. Businesses with turnover over `1.5 crore would be under dual control of the Centre and states.

Tuesday’s meeting was attended by 18 states and was aimed at building consensus between the Centre and the states. The states backed the Centre, which has suggested the 1% additional tax on interstate sales be dropped.

Speaking to the media, Mitra said the principle of the GST rate had been worked out. The rate would be such that it reduces tax incidence on the common man while protecting the revenues of states, he said.