Center has no money to pay GST dues from Corona, 10 crore jobs in peril – told a parliamentary committee

GST share

According to a minimum of two members who attended the board meeting, the finance secretary made these comments in response to an issue on the Coronavirus epidemic and therefore the lack of revenue thanks to the lockdown.

Finance Secretary Ajay Bhushan Pandey told the Parliamentary committee (Finance) during a meeting on Tuesday (July 28, 2020) that the govt wasn’t during a position to pay the states their GST share as per the prevailing distribution formula. English newspaper The Hindu has given this information by quoting sources. Please tell that the chairman of the committee is BJP MP, Jayant Sinha.

According to a minimum of two members who attended the board meeting, the finance secretary made these comments in response to an issue on the Coronavirus epidemic and therefore the lack of revenue thanks to the lockdown. The members then questioned how the govt could curb the commitment of the states. In response to anonymity, a member said that in response, Pandey said, “If the revenue collection goes below a particular limit, then the GST Act has provisions to re-implement the formula to offer compensation to state governments.”.

On Monday, the Finance Ministry said that the Central Government had released the last installment of 13,806 crore GST compensation for the fiscal year 2019-20. It’s noteworthy that the GST Council was scheduled to satisfy in July and work on the formula to urge compensation to the states. However, the meeting has not been called yet.

Here, thanks to the coronavirus epidemic and therefore the lockdown that has been operational for months, there has been a crisis on the utilization of crores of individuals within the country. In fact, the representative of the govt, who attended the meeting of the Parliamentary committee attached to the Ministry of Commerce, gave a presentation on the utilization situation within the country. A really worrying figure was given in it. Consistent with this, thanks to Covid-19 and lockdown, employment of about a million people within the country has been threatened. However, it had been not clear at the meeting how long the info is and which areas are going to be affected the foremost.

At the meeting, the govt was told that the Indian economy depends to an outsized extent on investment and trade from Europe, China, and America. Thanks to the transition, trade, and investment from these countries are predicted to decrease thanks to different reasons.