Central government releases GST dues of states, given Rs 36400 crore
The Modi government at the middle has released GST compensation of 36,400 crores for all states and union territories. This GST compensation is being reported from December 2019 to February 2020. Significantly, various states of the country are targeting the Modi government regarding the GST dues. many nations had also raised this issue during the meeting with the Prime Minister.
Explain that this important decision has been taken by the Central Government at this point because the states were in great need of cash to affect this situation of the Corona epidemic. consistent with the knowledge, a complete GST grant of Rs 1,15,096 crore was already released by the central government for the amount April-November, 2019.
The central government gave GST dues to state governments
Many state governments were demanding GST payment In fact, many nations of the country are demanding GST compensation for an extended time because their resources were adversely affected thanks to corona and lockdown. The states were struggling to satisfy their financial obligations, thanks to which many nations also resorted to extend taxes on alcohol and fuel.
The increase in tax was started by Delhi Chief Minister, Arvind Kejriwal with a rise in tax by 70%, soon after which each state of Uttar Pradesh, Karnataka, Andhra Pradesh, West Bengal used the rise in taxes as how to extend revenue.
Explain that state governments earn income through taxes on fuel, alcohol, property registration, and vehicle sales. However, thanks to the lockdown, all things were almost closed thanks to which the income sources were limited with the states.