Gst Compensation News

The Centre’s decision to borrow to compensate states for GST losses should help resolve the unsavory dispute and allow all to focus energies on the bigger challenges facing the country

The Centre’s decision to borrow on behalf of states should help resolve a big dispute and let all administrations focus on covid challenges

'There is no unanimity but that does not mean there is a dispute. (GST compensation) cess has been extended beyond five years,' says FM

The Centre has drawn a distinction between what is payable to states as compensation due to implementation of the indirect tax reform, rolled out in 2017, and the revenue loss on account of the pandemic

The temporary retention of GST compensation in Consolidated Fund of India in FY18 and FY19 cannot be termed as ‘diversion’, the government saidThis came in response to a CAG report that said there was short crediting of the GST cess collected, totalling ₹47,272 crore

21 states, mostly ruled by BJP or parties which have supported it on various issues, have opted to borrow ₹97,000 crore to meet the GST revenue shortfall in the current fiscal

We have to open up the economy with all precautions. Otherwise people who do not die of coronavirus, will die of hunger and frustrationAll the financial management powers have been taken away from states and then you are saying that we should find a middle path. The option they are giving is akin to starving states to death

States have been complaining about delayed compensation after they stopped receiving bimonthly payouts from the Centre starting AugustThe GST Council meeting on Wednesday will explore measures to raise revenue receipts, including raising cess on some goods, and explore ways to curb tax evasion

The GST Council, the highest decision making body of the indirect tax regime, is slated to hold its meeting on 18 DecMost of the states rued that the delay in payment has put pressure on their finances affecting many development work

Finance Minister Nirmala Sitharaman spoke at the 17th edition of the Hindustan Times Leadership Summit. She addressed the issue of GST and said that all states applied their mind on the GST that has been implemented. She also spoke on the issue of compensation to states and said that the government will honour its commitment to compensate the states. Watch the video for more details.