21 states agree with the first option of GST compensation
Out of the 2 loan options given to the states by the central government, 21 states have chosen the primary option. Consistent with information received from sources within the Ministry of Finance, 1 of those is additionally a Congress-ruled state. Consistent with the officer related to the case, albeit there’s a problem of voting on the difficulty of compensation, it has not been difficult for the loan scheme. He informed that entire states and union territories have a presence in the GST Council. As per the GST Act, only 20 states need to pass a resolution to vote on any issue.
The Union Territory of Congress is the Puducherry, the primary option for the loan. Other states like Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, Uttarakhand and North State are additionally included.
states agree GST compensation
Manipur is that the only state to possess opted for the second loan option but later opted for the primary option. It’s also getting information that within the coming days the remainder of the states also will send their opinion to the GST Council on their option. In such a situation, it’s estimated that the number of individuals choosing the primary option may increase further. The ultimate decision on this matter is going to be taken at the GST Council meeting to be persisted 5 October 2020. As a primary option, the states are going to be given a loan of Rs 97,000 crore from the Federal Reserve Bank. And by extending the amount of granting GST compensation, the quantity borrowed from the compensation fund to be collected after June 2022 is going to be repaid.
West Bengal May need to await GST CompensationWest Bengal May need to await GST Compensation.
21 states will take loans to catch up on the decline in GST recovery under the pressure of the Covid-19 epidemic. The GST Council, in its meeting held recently, gave states two options to require loans to hide GST. 21 states have agreed on this, including most of the BJP ruled states.
Sources within the Finance Ministry said on Sunday that thus far the appliance for taking a loan of Rs 97 thousand crores has been received for the present fiscal year. States that don’t apply by October 5 will need to wait until June 2022 to urge GST compensation. Uttar Pradesh, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim Tripura and Uttarakhand Has applied. Aside from this, no response has been received from Jharkhand, Kerala, Maharashtra, Delhi, Punjab, Rajasthan, Tamil Nadu, Telangana, and West Bengal thus far.
In the current fiscal year, the GST realization of two .35 lakh crore to the states is predicted below. Out of this, 97 thousand crore GST will get less as compensation, while 1.38 lakh crore is going to be ready to be recovered fewer thanks to an epidemic.
states agree GST compensation
The Center had given two options
Last month, the Central Government had given two loan options to the states to hide the GST. Under this, you’ll take a loan of 97 thousand crores from the special window of RBI or can raise the whole 2.35 lakh crores from the market. It had been also proposed to increase the amount of cess, recovery on luxury, and harmful products.