42nd meeting of GST Council postponed till October 5, these issues are going to be discussed
The GST Council meeting has been postponed till October 5. Earlier this meeting was to be persisted September 19 during this context, the sources said that the 42nd meeting of the Council has been postponed because the Parliament session is going to be happening during that point. The middle decided last month that the 42nd meeting of the GST Council would be persisted 19 September. The monsoon session of Parliament had not been decided by that point.
The meeting is going to be important
The meeting of the GST Council to be persisted October 5 is going to be vital, as there’s a dispute between the middle and therefore the states over the difficulty of funding a deficit of Rs 2.35 lakh crore in GST collection. Consistent with the Center’s calculation, a discount of Rs 97,000 crore is said to the implementation of GST. The remaining Rs 1.38 lakh crore shortfall is thanks to the impact of Kovid-19 on state revenues.
The center gave two options
The middle, last month gave states two options to boost Rs 97,000 crore of debt or Rs 2.35 lakh crore from the market through a special facility provided by the Federal Reserve Bank. Aside from this, the middle had also proposed to increase the compensation cess on luxury and non-perishable goods from 2022 onwards, in order that states pay the debt.
GST Council meeting postponed
Six non-BJP ruled states – West Bengal, Kerala, Delhi, Telangana, Chhattisgarh, and Tamil Nadu – had written in the middle opposing the choice of states taking loans. Sources said that by September 8, seven states have informed the middle about their choice.
Gujarat, Bihar, Madhya Pradesh, Karnataka, and Tripura have opted for a loan of Rs 97,000 crore. At an equivalent time, Sikkim and Manipur have opted for a second debt raising Rs 2.35 lakh crore from the market. The Goods and Services Tax (GST) Council meeting this month, which was to be persisted September 19, has now been postponed to October next month. It’s reported that now the 42nd meeting of the GST Council is going to be persisted 5 October. A subsequent meeting of the GST Council is extremely important because it’ll discuss the GST compensation of the states and union territories.
The economy is badly affected
States and Union Territories may require GST compensation of about Rs 3.12 lakh crore within the current fiscal year. It’s jumped 89% in 2019-20 thanks to a steep decline in tax income. The economy has been severely suffering from the 68-day nationwide lockdown and sanctions caused by the coronavirus epidemic.
Earlier, the meeting was persisted August 27
Let me tell you that earlier on August 27, a gathering of the GST Council was held, during which the compensation of compensation to the states and measures to effect this deficiency was discussed. The central government has given two options to the state governments to affect the gap within the GST compensation. The primary option during this is that the middle borrows and pays the states. While the opposite option is that the states themselves borrow from the RBI.