Kovid Act of God, it had an impression on GST collection 2.35 lakh crore in FY 2021
The 41st meeting of the products and Services Tax (GST) Council was persisted Thursday. Minister of finance Nirmala Sitharaman said that GST collection has reduced thanks to COVID. There could also be a shortfall of Rs 2.35 lakh crore in GST collection in FY 2021. He described COVID because of the Act of God.
There was no major decision within the meeting. It had been hoped that the council could make a choice on tax cuts on two-wheelers. Minister of finance Nirmala said that there’s no timeline regarding tax write-off on two-wheelers. it’s now being expected that this might be considered within the next council meeting. A subsequent meeting of the GST Council is going to be held in September.
GST collection 2.35
The states sought a week’s time to discuss the compensation to tend to the states. The minister of finance said that the states got two options for compensation. The states sought a week’s time to think about both these options. This arrangement of compensation is going to be for the fiscal year 2021. The Finance Secretary hoped to gather 65 thousand crores of Compensation Cess in FY 2021.
These are two options
● First: Center to borrow and pay.
● Second: State itself borrow from RBI.
Finance Secretary said- No discussion on increasing GST rate,
Finance Secretary said that there has been no discussion about increasing GST rates. The Finance Secretary has expected a compensation collection of Rs 3 lakh crore within the current fiscal year. The Finance Secretary said that there’s an impressive of 1.5 lakh crore rupees from April to July for GST compensation of states.
Currently, the 28% GST
On two-wheelers has been demanding cuts within the GST on two-wheelers for an extended time. Currently, two-wheelers attract 28 percent GST. People within the automobile sector are demanding that it’s reduced to 18 percent. Rajiv Bajaj, MD, Bajaj Auto, says that if the GST rate comes right down to 18 percent, then the worth of two-wheelers are often reduced by Rs 10,000.
Finance Minister also supported the suggestion of reducing GST
On the suggestion of reducing GST, the minister of finance said that this is often indeed an honest suggestion, it’ll be raised within the meeting of GST Council because a two-wheeler is neither a luxury item nor Harmful item The two-wheeler currently charges 28 percent GST. On behalf of CII, it had been said that the minister of finance assured that this was a far better suggestion from the industry, so it might be thought to vary the GST rates of the two-wheeler.