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Union Minister of State for Finance said no money to pay GST compensation

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Union Minister of State for Finance said no money to pay GST compensation

no money to pay GST compensation

Union Minister of State for Finance said no money to pay GST compensation

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The Goods and Services Tax (GST) Indemnity Arrears dispute doesn’t appear to be resolved. Congress MPs from Chhattisgarh raised the difficulty of GST dues in Parliament on Saturday. In response, the central government said, the quantity of GST compensation cess collected by the govt within the current fiscal year isn’t sufficient to issue compensation.

In a written reply to an issue from Congress to Rajya Sabha MP Phoolodevi Netam, Union minister of finance Anurag Singh Thakur said, “The amount of GST compensation cess collected within the current fiscal year isn’t sufficient to offer GST compensation from April to July.” He said that a number of the cess collected till July 2020 has been paid in payment of compensation till March. Anurag Thakur said, the states haven’t any idea to reschedule the compensation payment formula. Here MP Phoolodevi Netam has written to Union minister of finance Nirmala Sitharaman demanding compensation of the outstanding GST.

Chhattisgarh to urge 2827 crores rupees
According to the provisions of the GST Act, compensation to the states will continue. Consistent with the info presented within the House, the Central Government owes GST compensation of 1 lakh 51 thousand 365 crores. Of this, Chhattisgarh has got to get 2827 crore rupees.

Meeting on IGST on the 22nd
A meeting of the GST Council of Ministers is proposed on 22 September through video conferencing. IGST (Integrated Goods and repair Tax) is to be discussed during this. It’ll be known what proportion amount is going to be received by the government from this tax. Let me tell you when there’s a deal between individuals or businessmen of two different states, then IGST is imposed thereon. Once assembled near the middle, it’s split in half between the middle and therefore the state.

Not intentionally giving amount: Badges
Deepak Badge, Congress MP from Bastar, said during the hour of Lok Sabha, the Central Government is deliberately not paying the quantity of GST compensation to Chhattisgarh. He said the economic condition of the states is bad during the pandemic. Thanks to the state’s indirect taxes being included within the GST, it’s becoming difficult to supply development resources to them. 2827 crore of Chhattisgarh is outstanding for the last five months and therefore the central government is advising the states to require loans at high rates.

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