Cess pool: The Hindu Editorial on CAG report of Centre's accounts
4 years, 2 months ago

Cess pool: The Hindu Editorial on CAG report of Centre's accounts

The Hindu  

The latest audit of the Union Government’s accounts tabled in Parliament this week reveals that the Finance Ministry quietly retained over 40% of all cess collections in 2018-19 in the Consolidated Fund of India. This not only helped understate India’s revenue and fiscal deficit numbers but also meant that the purposes for which Parliament approved such cesses — be it health, education or infrastructure development — were not met. The GST Compensation Cess, over which the Centre and several States have now locked horns, was not spared either, with ₹47,272 crore not remitted to its rightful account over the first two years of GST. With a climate of distrust hovering over India’s federal polity — be it over the GST compensation dispute or the passage of Farm sector Bills without taking States on board — it is critical for the Centre to rebuild bridges.

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History of this topic

CESTAT Allows Refund Of Unutilised Cenvat credit of Education Cess For Payment Of Output Tax
2 years, 2 months ago

CESTAT Allows Refund Of Unutilised Cenvat credit of Education Cess For Payment Of Output Tax

Live Law  

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal has allowed the refund of unutilised cenvat credit of education cess and secondary and higher education cess for payment of output tax.The bench of Anil Choudhary has relied on the order passed by the Tribunal in the case of Bharat Heavy Electricals Ltd. The Delhi Bench of the …

CAG pegs Andhra Pradesh’s off-budget borrowings at ₹86,260 crore in 2020-21
2 years, 3 months ago

CAG pegs Andhra Pradesh’s off-budget borrowings at ₹86,260 crore in 2020-21

The Hindu  

The Comptroller and Auditor General of India, in its State Finances Audit Report for the Financial Year 2020-21, said that the State government had a liability for off-budget borrowings amounting to ₹86,260 crore, which was not disclosed appropriately in its budget documents. Revenue receipts The CAG mentioned that the State witnessed a 5.50% increase in revenue receipts during the year …

‘States’ outbursts against Centre unwarranted’
2 years, 6 months ago

‘States’ outbursts against Centre unwarranted’

The Hindu  

Taking on the recent spate of “repeated, constant and instant” outbursts against the Centre from some States on fiscal issues, top government officials said on Wednesday that the criticism of the Goods and Services Tax regime’s functioning based on a Supreme Court verdict last week was as ill-informed as the critique of fuel tax cuts announced last Saturday. Even before …

Extending GST compensation as a reform catalyst
2 years, 11 months ago

Extending GST compensation as a reform catalyst

The Hindu  

It has been claimed that the implementation of the Goods and Services Tax in India was a grand experiment in cooperative federalism in which both the Union and the States joined hands to rationalise cascading domestic trade taxes and evolve a value-added tax on goods and services. The calculation To allay the fears of States of possible revenue loss by …

We’ve awarded more grants to states to compensate for cess: NK Singh
3 years, 10 months ago

We’ve awarded more grants to states to compensate for cess: NK Singh

Live Mint  

Fifteenth Finance Commission chairman N.K. The impact of covid circumscribed our revenue outcomes in multiple ways and the resource envelope on the basis of which we did our planning naturally would have looked significantly different because assignment of the revenue deficit grants this time which is ₹2.94 trillion, I don’t know with much higher availability of revenues what those numbers …

'Transition Of Unitilized Input Tax Credit Only For Taxes And Duties Subsumed By GST' : Madras HC Disallows Credit For 3 Cesses [Read Judgment]
4 years, 2 months ago

'Transition Of Unitilized Input Tax Credit Only For Taxes And Duties Subsumed By GST' : Madras HC Disallows Credit For 3 Cesses [Read Judgment]

Live Law  

In an important judgment that can have pan-India implications, the Madras High Court on Friday held that the cesses that have not been subsumed by the Goods and Service Tax laws cannot be carried forward to claim set off against output tax credit.A division bench of the High Court was considering the issue relating to Education Cess, Secondary and Higher …

Flagging cess non-transfer, its economic impact
4 years, 2 months ago

Flagging cess non-transfer, its economic impact

The Hindu  

The Financial Audit Report of the Government of India by the Comptroller and Auditor General for 2018-19 placed in Parliament on September 23 has raised significant issues of a lack of transparency and propriety. The C&AG’s report stated that the Government of India did not transfer ₹6,466 crore of compensation cess revenue in 2017-18 and ₹40,806 crore in 2018-19. Thus, …

The Hindu Explains | Where are the funds collected through cess parked?
4 years, 2 months ago

The Hindu Explains | Where are the funds collected through cess parked?

The Hindu  

The story so far: The Comptroller and Auditor General of India, in its latest audit report of government accounts, has observed that the Union government withheld in the Consolidated Fund of India more than ₹1.1 lakh crore out of the almost ₹2.75 lakh crore collected through various cesses in 2018-19. The nation’s highest auditor also found that over ₹1.24 lakh …

Temporary Retention of GST Cess Pending Reconciliation Not Diversion, Says Finance Ministry
4 years, 2 months ago

Temporary Retention of GST Cess Pending Reconciliation Not Diversion, Says Finance Ministry

News 18  

Finance ministry sources have countered CAG audit finding of central government wrongly retaining Rs 47,272 crore of GST compensation cess meant for states, saying temporary retention cannot be termed as diversion. Days after the Comptroller and Auditor General flagged that the Centre in first two years of the GST implementation wrongly retained GST compensation cess that was meant to be …

Temporary retention of GST cess pending reconciliation not diversion: Finance Ministry sources
4 years, 2 months ago

Temporary retention of GST cess pending reconciliation not diversion: Finance Ministry sources

The Hindu  

Finance ministry sources have countered CAG audit finding of Central government wrongly retaining ₹ 47,272 crore of GST compensation cess meant for states, saying temporary retention cannot be termed as diversion. Days after the Comptroller and Auditor General flagged that the Centre in first two years of the GST implementation wrongly retained GST compensation cess that was meant to be …

Centre 'betrayed' states by transferring compensation cess to CFI, alleges Siddaramaiah
4 years, 2 months ago

Centre 'betrayed' states by transferring compensation cess to CFI, alleges Siddaramaiah

India TV News  

Senior Congress leader Siddaramaiah on Saturday alleged that the illegal transfer of Rs 47,272 crore of GSP compensation cess to Consolidated Fund of India was an attempt by the Centre to 'cover up' the shortfall in other collections. "The CAG report reveals that @BJP4India govt has transferred 47,272 Cr of the GST compensation cess collected to Consolidated Fund of India, …

Centre used GST compensation cess elsewhere, violated law: CAG
4 years, 2 months ago

Centre used GST compensation cess elsewhere, violated law: CAG

The Hindu  

The CAG has found that the Union government in the very first two years of the GST implementation wrongly retained ₹47,272 crore of GST compensation cess that was meant to be used specifically to compensate states for loss of revenue. “The GST Compensation Cess Act, 2017 provides for levy of cess for the purpose of providing compensation to the states …

CAG Says Centre Broke Law by Using GST Cess Elsewhere Amid Row Over Unpaid Dues to States
4 years, 2 months ago

CAG Says Centre Broke Law by Using GST Cess Elsewhere Amid Row Over Unpaid Dues to States

News 18  

Finance Minister Nirmala Sitharaman, quoting the view of the Attorney General of India, ruled out funding the GST revenue shortfall from the Consolidated Fund of India in the Lok Sabha last week. However, the Comptroller and Auditor General of India has discovered that the Centre breached the law by retaining Rs 47,272 crore of GST compensation cess in the CFI …

Centre retained ₹1.1 lakh crore of cess receipts, observes CAG
4 years, 3 months ago

Centre retained ₹1.1 lakh crore of cess receipts, observes CAG

The Hindu  

The Centre retained in the Consolidated Fund of India more than ₹1.1 lakh crore out of the almost ₹2.75 lakh crore collected in 2018-19 through various cesses, instead of transferring the receipts to the specified Reserve Funds that Parliament had approved for such levies, the Comptroller and Auditor General of India observed in a report. Moreover, ₹1,24,399 crore collected as …

GST cess falls 42% short in FY20
4 years, 4 months ago

GST cess falls 42% short in FY20

The Hindu  

The Centre made up a 42% shortfall in Goods and Services Tax compensation cess collection in 2019-20 by using balance of cess from previous years, plus a transfer from the Consolidated Fund of India. GST revenue fell 41% in the first quarter of 2020-21, indicating that the shortfall in cess collections and likely delays in payments to States is likely …

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