GST Council Meeting: Declaration of Sitharaman, will distribute 20 thousand crores in states
GST Council today minister of finance Nirmala Sitharaman meeting chaired by (Finance Minister Nirmala Sitaraman). After the meeting, Sitharaman said that Rs 20,000 crore from compensation cess is going to be distributed among the states. They’re going to get this amount. The GST Council has also decided to continue the compensation cess even after June 2022. The GST Council will meet again on Columbus Day to debate the difficulty of compensation to the states.
There was no consensus on the difficulty of compensation to the states within the meeting. Sitharaman said that 21 states chose the choices suggested by the middle. But some states chose no alternative. In a way, the difficulty of GST compensation has not been resolved within the meeting. Therefore, it had been decided to debate this issue further. Subsequent council meetings are going to be persisted 12 October.
Not to deny compensation
Sitharaman said that we aren’t denying the compensation amount to the states. He said that such a situation has arisen thanks to the Corona crisis. Nobody had imagined such a situation before. The present situation isn’t such the central government is seizing the fund, and refusing to offer. We’ll need to borrow funds under any circumstances. He said that Bihar minister of finance Sushil Kumar Modi has suggested that everybody should meet again and discuss the choice of borrowing. So we’ll meet again on Columbus Day and this problem is going to be discussed.
Sitharaman said that IGSET of Rs 24,000 crore would tend to the states which had received less earlier. It’ll be released next week. Finance Secretary Ajay Bhushan Pandey said that taxpayers whose annual turnover is a smaller amount than Rs 5 crore won’t get to file monthly returns i.e. GSTR 3B and GSTR 1 from January. They only need to file quarterly returns. The GST Council has also decided to exempt the satellite launch services of ISRO and Antrix from the products and Services Tax Scope, including easing the burden on small taxpayers.
Compensation Cess on luxury and lots of other items are going to be started from 2022. Also will be carried forward. That is, on products like cars, cigarettes, the cessation cess will continue, it’s been decided to save lots of the states from harm. Consistent with the rule, it had been to require only five years after the GST came into force. The deadline for levying the primary GST cess was June 2022.
The Center has given states the choice to borrow from the market or from the Federal Reserve Bank to form up for the shortfall in GST collections. Consistent with the estimates of the middle, the states are estimated to possess a deficit of Rs 2.35 crore in Goods and Services Tax (GST) collection within the current fiscal year. Consistent with the Center’s estimate, the shortfall of about Rs 97,000 crore is thanks to GST implementation, while the loss of the remaining Rs 1.38 lakh crore is thanks to COVID-19. This epidemic has adversely affected the revenue of the states. The middle has given two options to the states to satisfy this shortfall. Under this, an option has been given to requiring Rs. 97,000 crore from the special facility provided by the Federal Reserve Bank or Rs. 2.35 lakh crore from the market.