GST compensation payment delay raised
5 years ago

GST compensation payment delay raised

The Hindu  

The Parliamentary panel on Finance met on Friday and Opposition members raised the delay in payment of compensation for loss of revenue from implementation of GST since August to the States. According to sources, Congress MP Manish Tewari, who is a member of the committee demanded that the panel should debate the delay in payment. “There is a huge revenue shortfall of about ₹5 lakh crore and compensatory GST allowance is not being paid to the States. In November, five non-BJP States — Punjab, Rajasthan, Kerala, West Bengal and Delhi — had in a common statement flagged the issue saying that GST comprised nearly 60% of the tax revenues of States and several States were already facing deficits up to 50% of the total GST.

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History of this topic

Gabbar Sitharaman Tax: Congress’ fresh jab at FM, says new circulars are issued 90 months after GST rollout
5 days, 23 hours ago

Gabbar Sitharaman Tax: Congress’ fresh jab at FM, says new circulars are issued 90 months after GST rollout

Live Mint  

Congress leader Pawan Khera on Thursday took a swipe at Union Finance Minister Nirmala Sitharaman over Goods and Service Tax and said that even 90 months after the implementation of GST, new circulars are being issued. Speaking to ANI in Rajasthan, Khera referred to GST as Gabbar Sitharaman Tax, and said it has affected everyone. The tax that should have …

Ludhiana: Industrialists seek release of GST refunds
1 month, 3 weeks ago

Ludhiana: Industrialists seek release of GST refunds

Hindustan Times  

Industrial bodies in Punjab have collectively urged the state government to expedite the process to release the pending GST refunds, citing significant financial strain caused by delayed disbursements. A meeting was held under the chairmanship of Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organization, along with Harsimerjit Singh Lucky, president of the United Cycle and Parts …

GST relief may hit state finances
5 months, 3 weeks ago

GST relief may hit state finances

Deccan Chronicle  

Hyderabad: The GST Council’s decision to provide relief to taxpayers in Telangana could have serious consequences for state finances. The most hard-hitting decision taken at the 53rd meeting of the Council was the relief extended to taxpayers for the financial years 2017-18 to 2019-20 waving interest and penalty on tax demands under Section 73. This step will benefit tax payers …

BJP Government Did Not Rectify Injustice Meted out To Karnataka Alleges CM In His Budget
10 months, 4 weeks ago

BJP Government Did Not Rectify Injustice Meted out To Karnataka Alleges CM In His Budget

Deccan Chronicle  

Bengaluru: Chief Minister Siddaramaiah pointed out that Central Government led by Bharatiya Janata Party had meted out three injustices to States including Karnataka such as “unscientific” implementation of Goods and Services Tax, increase in Cesses and Surcharges and change in allocation of formula in tax devolution and grants-in-aid, adversely affected the financial strength of the State. Siddaramaiah accused the previous …

Low budgetary allocation crippling MGNREGS, says Parliamentary panel
11 months ago

Low budgetary allocation crippling MGNREGS, says Parliamentary panel

The Hindu  

A reduced budget at the outset of the financial year for the Mahatma Gandhi National Rural Employment Guarantee Scheme has a “cascading effect on various important aspects” of the programme and a telling impact on its progress, the Parliamentary Standing Committee on Rural Development said in its report tabled on Thursday. ‘Cascading effect’ The committee pointed out that the budgetary …

Centre will clear GST dues of states, TS to get Rs.1835 cr in arrears
1 year, 10 months ago

Centre will clear GST dues of states, TS to get Rs.1835 cr in arrears

Deccan Chronicle  

New Delhi: The GST Council on Saturday said the Centre had decided to clear the pending balance of GST compensation of Rs.16,982 crore for June 2022. The Centre will also clear the admissible final GST Compensation to those states who have provided revenue figures certified by the Accountant General which amounts to `16,524 crore. Briefing media after the 49th meeting …

Centre to pay Rs 689 crore GST dues to AP
1 year, 10 months ago

Centre to pay Rs 689 crore GST dues to AP

Deccan Chronicle  

Vijayawada: Andhra Pradesh finance minister Buggana Rajendranath said the central government has decided to pay GST arrears that were pending to the state till June. He said the Council has agreed to revise the penalties levied for late filing of returns by companies with a business volume of Rs 20 crore as suggested by the state. Rajendranath has attended the …

Harish Rao skips GST Council meeting, Centre clears pending GST compensation for TS
1 year, 10 months ago

Harish Rao skips GST Council meeting, Centre clears pending GST compensation for TS

Deccan Chronicle  

HYDERABAD: The GST Council on Saturday said the Centre had decided to clear the pending balance of GST compensation of Rs 16,982 crore for June 2022. The Centre will also clear the admissible final GST Compensation to those states who have provided revenue figures certified by the Accountant General which amounts to Rs 16,524 crore. In addition, the GST Council …

GST Council clears setting up tribunals, ad valorem cess on pan masala
1 year, 10 months ago

GST Council clears setting up tribunals, ad valorem cess on pan masala

Live Mint  

Goods and Services Tax Council on Saturday decided to set up appellate tribunals to resolve GST disputes, tighten the tax regime of pan masala, gutka and chewing tobacco to check tax evasion and reduce the late fee on annual return filings to small businesses, finance minister Nirmala Sitharaman, who chairs the Council, told reporters after the 49th meeting of the …

Entire GST compensation cess dues will be cleared, announces Nirmala Sitharaman
1 year, 10 months ago

Entire GST compensation cess dues will be cleared, announces Nirmala Sitharaman

Hindustan Times  

Finance minister Nirmala Sitharaman on Saturday announced that the central government will clear the entire dues of the pending balance of the GST compensation, as decided at the 49th GST Council meeting. Even that is getting cleared," Nirmala Sitharaman said announcing the clearance of all GST dues to the tune of ₹16,982 crore. Finance minister Nirmala Sitharaman addressing the press …

49th GST Council Decision:
1 year, 10 months ago

49th GST Council Decision:

ABP News  

Finance Minister Nirmala Sitharaman said that the entire due on the pending balance of the GST compensation will be cleared as of today. Nirmala Sitharaman during the media briefing on the outcomes of the 49th GST Council meeting said, "Although this amount is not really available in the compensation fund as of today, we have decided to release this amount …

GST Council: Pending GST compensation of ₹16,982 cr for June will be cleared
1 year, 10 months ago

GST Council: Pending GST compensation of ₹16,982 cr for June will be cleared

Live Mint  

Union Finance Minister Nirmala Sitharaman on 18 February said that the entire pending GST compensation will be cleared. Apart from this, she also said that the government will clear the entire pending balance of the GST compensation - a total of ₹16,982 crores for June. “We have announced today that the entire due on the pending balance of the GST …

CBIC extends GSTR 3B filing return due date amid glitches in GSTN portal
2 years, 2 months ago

CBIC extends GSTR 3B filing return due date amid glitches in GSTN portal

Firstpost  

Due to the slow functioning of the GSTN portal, the GST Implementation Committee of the GST Council had approved extension of the due date of GSTR-3B return filing for the month of September 2022, for the monthly filers, from 20 October to 21 October. The Central Board of Indirect Taxes and Customs stated in a tweet that it had received …

Finance Ministry Confirms That Some States Have Sought Extension Of GST Compensation For A Further Period Of Five Years.
2 years, 5 months ago

Finance Ministry Confirms That Some States Have Sought Extension Of GST Compensation For A Further Period Of Five Years.

Live Law  

The Finance Ministry has confirmed that some states have sought extension of GST compensation for a further period of five years. As per section 18 of the Constitution Act, 2016, Parliament shall, on the recommendation of the GST Council, provide for compensation to the States for loss of revenue arising on account of the GST for a period of five …

GST compensation sunset: Punjab, Goa, Chhattisgarh may face most revenue stress
2 years, 5 months ago

GST compensation sunset: Punjab, Goa, Chhattisgarh may face most revenue stress

The Hindu  

With the sunset of the five-year assured compensation for States under the Goods and Services Tax regime from this month, Punjab, Goa and Chhattisgarh are likely to face the most revenue stress, as per a new working paper by the National Institute of Public Finance and Policy. The paper, titled ‘Revenue Assessment of GST in India’ by NIPFP associate professor …

GST compensation due to States now totals ₹35,266 crore
2 years, 5 months ago

GST compensation due to States now totals ₹35,266 crore

The Hindu  

Outstanding Goods and Services Tax Compensation dues to States now amount to ₹35,266 crore, the Finance Ministry informed Parliament on Monday. These dues pertain to June 2022, the last month for which States were assured a certain level of revenue in order to switch to the GST regime, and would be paid from GST Compensation Cess collections, whose levy has …

AP raises concern over compensation at GST council meet
2 years, 6 months ago

AP raises concern over compensation at GST council meet

Deccan Chronicle  

VIJAYAWADA: AP finance minister Buggana Rajendranath Reddy expressed various concerns of the state at the 47th GST council meeting held in Chandigarh on Wednesday. Rajendranath Reddy maintained that AP needs to be compensated as growth of GSDP in the state has not been encouraging in the last five years. The minister wanted all public services related government organisations and public …

GST Council discusses compensation issue ‘informally’
2 years, 6 months ago

GST Council discusses compensation issue ‘informally’

Live Mint  

Chandigarh: The Goods and Services Tax Council is “informally” discussing the demands from several state governments that their indirect tax reform-related revenue losses be compensated beyond June when the current scheme expires, said a person aware of the development. The current scheme of compensation, which ran for five years since the inception of GST in July 2017, expires at the …

Forced by Opposition, GST Council to discuss compensation to states barely 24 hours before deadline
2 years, 6 months ago

Forced by Opposition, GST Council to discuss compensation to states barely 24 hours before deadline

India Today  

Facing pressure from Opposition-ruled states, the GST council on Tuesday agreed to include their demand for a discussion on extension of compensation to states as an agenda item on Day 2 of the meeting on Wednesday, 24 hours before the five-year deadline ends. However the compensation cess, levied on luxury and demerit goods, was to continue till March 2026 primarily …

Why is GST compensation important for states even after 5 years of new tax regime?
2 years, 6 months ago

Why is GST compensation important for states even after 5 years of new tax regime?

India Today  

It has been five years since the Goods and Services Tax was implemented in India and the government’s expected time for full transition into the new tax regime is now over. “Until the GST implementation, producing or exporting states besides collecting VAT used to collect central sales tax up to two per cent on the inter-state sales. After the GST …

Two-day GST Council meet begins today, compensation to states a big fault line
2 years, 6 months ago

Two-day GST Council meet begins today, compensation to states a big fault line

India Today  

The powerful GST Council is all set to meet for its first meeting this year, to be held in Chandigarh today. With political differences between the Centre and the states at an all-time high, the council’s capability to create consensus over economic issues will face an additional test after the Supreme Court ruling in May this year that said: “Parliament …

GST Council meet: States' compensation, easier e-comm suppliers' registration, tax tweaks on cards
2 years, 6 months ago

GST Council meet: States' compensation, easier e-comm suppliers' registration, tax tweaks on cards

India TV News  

GST Council meet: The 47th GST Council meeting that is currently underway is slated to discuss a host of issues, including a mechanism for compensating states for revenue loss, tax rate tweaks in some items and relaxed registration norms for small online suppliers. Further, the meeting of the Council, chaired by the Union Finance Minister Nirmala Sitharaman and comprising state …

The road ahead for GST as it completes 5 years
2 years, 6 months ago

The road ahead for GST as it completes 5 years

Live Mint  

The Goods and Services Tax Council meets for two days from Tuesday as the landmark indirect tax reform completes five years. The 47th meeting of the GST Council will be held at a time tax authorities are planning to improve the efficiency of the GST architecture even as the economy continues healing after the pandemic. Pruning the list of GST …

Inflation delays GST rates rationalisation, Centre counters states
2 years, 7 months ago

Inflation delays GST rates rationalisation, Centre counters states

India Today  

First the Covid, then the ongoing Russia-Ukraine war. GST RATES The GST council then led by finance minister, late Arun Jaitley had kept just 50 items in the highest tax rate of 28 per cent. There is a view among the council members that to raise collections a rejig of taxes that includes several items being moved to higher tax …

The status of GST compensation dues
2 years, 8 months ago

The status of GST compensation dues

The Hindu  

The story so far: At a meeting with Chief Ministers last week, Prime Minister Narendra Modi said that several non-BJP ruled States had failed to cut taxes on fuel products whose prices have surged sharply since March and urged them to do so in the interest of giving relief to the people facing high inflation. Hours after the meeting, to …

Govt believes in lowering taxes, says FM Sitharaman amid fuel price hike
2 years, 9 months ago

Govt believes in lowering taxes, says FM Sitharaman amid fuel price hike

Live Mint  

Finance Minister Nirmala Sitharaman on Friday rejected opposition allegations against the government over the rise in fuel prices and said that the ruling alliance believes "in lowering the taxes and bringing less burden on common people," as per news agency ANI report. Additionally, the Finance Minister referred to the Russia-Ukraine conflict and said when former Prime Minister Jawaharlal Nehru's claim …

Centre borrows and releases Rs 75,000 crore to compensate states for GST revenue shortfall
3 years, 5 months ago

Centre borrows and releases Rs 75,000 crore to compensate states for GST revenue shortfall

Firstpost  

Shortfall in GST compensation to states in the current fiscal estimated at Rs 2.59 lakh crore, of which about Rs 1.59 lakh crore would have to be borrowed New Delhi: The government has borrowed and given to the states Rs 75,000 crore to make up for the shortfall in their revenues because of the GST implementation. “The Ministry of Finance …

Group of Ministers to study GST relief for COVID essentials
3 years, 7 months ago

Group of Ministers to study GST relief for COVID essentials

The Hindu  

The Finance Ministry on Saturday constituted a Group of Ministers to examine possible waivers of GST levies on essential COVID-relief material, including vaccines, even as industry expressed concerns on the delay over such a critical decision amid the second wave of the pandemic. Uday Shankar, president, Federation of Indian Chambers of Commerce and Industry, said “a quick decision” on reductions …

Economy in better shape this year as compared to 2020, says Revenue Secretary
3 years, 7 months ago

Economy in better shape this year as compared to 2020, says Revenue Secretary

India TV News  

Revenue Secretary Tarun Bajaj on Friday said the economy has not suffered as much this year amid the second wave of COVID-19 as compared to last year when there was complete lockdown. He further said if Rs 1.10 lakh crore gets collected every month on average through the Goods and Services Tax, then the states' GST revenue deficit would be …

GST regime is in crisis
3 years, 7 months ago

GST regime is in crisis

Hindustan Times  

The Goods and Services Tax Council will meet on May 28 after a gap of seven months. Many state governments, which are ruled by parties opposed to the Bharatiya Janata Party, have demanded a GST waiver on various kinds of medicinal supplies being used for treating Covid-19. Using GST Council meetings to tweak GST rates on various commodities – Gujarati …

Compensation Shortfall Likely to be Discussed in GST Council Meet on May 28
3 years, 7 months ago

Compensation Shortfall Likely to be Discussed in GST Council Meet on May 28

News 18  

Amid a growing chorus over the GST Council meeting not being convened for over seven months, the Union Finance Ministry on Saturday announced that the next meeting of the panel that decides on taxes on goods and services will be held on May 28. Union Finance Minister Nirmala Sitharaman will chair the 43rd meeting of the GST Council on May …

GST compensation shortfall | Jharkhand has accepted option, says Finance Ministry
4 years, 1 month ago

GST compensation shortfall | Jharkhand has accepted option, says Finance Ministry

The Hindu  

Jharkhand has accepted the alternative offered by the Centre to meet part of the GST compensation shortfall through a special borrowing window, the Finance Ministry said on Saturday. With Jharkhand’s acquiescence to the Centre’s proposed solution, all States and Union territories have now exercised the option to receive part of their GST implementation dues this year. The Centre had offered …

GST dues to States could touch ₹7 lakh crore by 2022: 15th Finance Commission
4 years, 2 months ago

GST dues to States could touch ₹7 lakh crore by 2022: 15th Finance Commission

The Hindu  

The gap between GST cess collections and the revenue shortfall faced by States for implementing the Goods and Services Tax could snowball to anywhere between ₹5 lakh crore to ₹7 lakh crore by June 2022 from the ₹2.35 lakh crore estimated for this year, the Fifteenth Finance Commission is learnt to have projected in its report. GST concerns Unless there …

Dissenting states likely to accept GST solution
4 years, 2 months ago

Dissenting states likely to accept GST solution

Hindustan Times  

With the Centre agreeing to borrow ₹1.1 lakh crore from a special window of the Reserve Bank of India and on-lend it to the states, some of the seven states that are yet to agree to the plan may now sign on, government officials with direct knowledge of the matter said on Friday. Centre’s decision on Thursday followed by GST …

How Centre borrowing Rs 1.1 lakh crore will impact states, Nirmala Sitharaman explains in a letter
4 years, 2 months ago

How Centre borrowing Rs 1.1 lakh crore will impact states, Nirmala Sitharaman explains in a letter

Hindustan Times  

A day after the Centre announced that it would borrow Rs 1.1 lakh crore on behalf of the states — much to the relief of the states as now they don’t have to borrow to pay the GST compensation shortfall— finance minister Nirmala Sitharaman wrote to all states explaining the change in stance. The total GST revenue shortfall for the …

India in stalemate on borrowing to help out pandemic-hit states
4 years, 3 months ago

India in stalemate on borrowing to help out pandemic-hit states

Live Mint  

5hit economy is likely to face delays after the federal government and some states on Monday failed to agree who should borrow to cover revenue shortfalls. India's Goods and Services Tax Council, comprising federal and state finance ministers, last week extended a surcharge on luxury goods including cars and tobacco products beyond 2022 to help states repay loans raised to …

No Consensus to Make up for GST Shortfall of States, Says FM Sitharaman after Council Meeting
4 years, 3 months ago

No Consensus to Make up for GST Shortfall of States, Says FM Sitharaman after Council Meeting

News 18  

The second GST Council meeting in a week, held on Monday, did not end the deadlock between opposition states and Centre, with Finance Minister Nirmala Sitharaman urging the states to opt for the first borrowing option. The two borrowing options given by the Centre to the states at an earlier GST meeting included: calculating GST related shortfall in revenue at …

GST Council to Discuss Compensation Issue for Third Time in a Row Tomorrow
4 years, 3 months ago

GST Council to Discuss Compensation Issue for Third Time in a Row Tomorrow

News 18  

The GST Council in its meeting on Monday is likely to discuss the suggestion of non-BJP ruled states of setting up a ministerial panel to develop consensus on the issue of compensation, sources said. The Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising of state finance ministers, will for the third time in a row discuss the issue …

The GST's uncertain future
4 years, 3 months ago

The GST's uncertain future

India Today  

The true test of leadership comes in times of adversity—the ability to develop consensus when the going gets tough. On November 27, 2019 the GST council wrote to state governments, informing them that GST and compensation cess collections in the previous few months had become ‘a matter of concern’ and that compensation requirements were ‘unlikely to be met’. The GST …

GST Compensation Quandary: States Ruled by BJP Rivals Need to Soften Stand and See Reason
4 years, 3 months ago

GST Compensation Quandary: States Ruled by BJP Rivals Need to Soften Stand and See Reason

News 18  

The inconclusive GST Council meeting, with repeated sparks between the Centre and Opposition-ruled states over the payment of compensation, sets a rather sad precedent. Decision was postponed to the next meeting on 12th of October.— Thomas Isaac October 5, 2020 Kerala’s finance minister Thomas Isaac tweeted after the council’s meeting that “10 states demand that full compensation should be paid …

Centre to Release Rs 20,000 Cr to States as GST Compensation, Cess to Be Levied Beyond 2022
4 years, 3 months ago

Centre to Release Rs 20,000 Cr to States as GST Compensation, Cess to Be Levied Beyond 2022

News 18  

The Centre on Monday said it will tonight release Rs 20,000 crore to states on account of GST compensation dues. Briefing reporters after the meeting of the 42nd GST Council here, Finance Minister Nirmala Sitharaman said the states which received less apportionment of Integrated GST for 2017-18, the Centre will next week transfer a cumulative Rs 24,000 crore to them. …

GST Council fails to reach consensus on compensation to states; next meeting on 12 October
4 years, 3 months ago

GST Council fails to reach consensus on compensation to states; next meeting on 12 October

Firstpost  

Finance minister Nirmala Sitharaman said the panel decided to extend the use of GST cess collections for compensating states beyond the previously agreed June 2022 timeframe New Delhi: A crucial meeting of the GST Council on Monday failed to reach a consensus on ways to compensate states as the panel was split on political lines over using borrowing as a …

Stormy GST Council meet likely on Monday; non-BJP states to oppose Centre's borrowing option
4 years, 3 months ago

Stormy GST Council meet likely on Monday; non-BJP states to oppose Centre's borrowing option

India TV News  

The GST Council meeting on Monday may turn into a stormy affair, with non-BJP ruled states still being in disagreement with the Centre on the compensation issue. While as many as 21 states, mostly ruled by BJP or parties which have supported it on issues, had till mid-September opted to borrow Rs 97,000 crore to meet the GST revenue shortfall …

21 States Accept Rs 97,000 crore Borrowing Proposal to Meet GST Shortfall
4 years, 3 months ago

21 States Accept Rs 97,000 crore Borrowing Proposal to Meet GST Shortfall

News 18  

As many as 21 states, mostly ruled by BJP or parties which have supported it on various issues, have opted to borrow Rs 97,000 crore to meet the GST revenue shortfall in the current fiscal, sources said on Sunday. In the current fiscal, the states are staring at a staggering Rs 2.35 lakh crore Goods and Services Tax revenue shortfall. …

₹1.51 Lakh Crore GST Compensation Due To States; GDP Contraction, Lockdown, Etc., Reasons For Revenue Shortfall: Centre Tells Lok Sabha
4 years, 4 months ago

₹1.51 Lakh Crore GST Compensation Due To States; GDP Contraction, Lockdown, Etc., Reasons For Revenue Shortfall: Centre Tells Lok Sabha

Live Law  

The GST compensation due to states stands at over ₹1.51 lakh crore, said the Union Ministry of Finance on Monday in the Lok Sabha.The Ministry said that the nominal GDP for Q1, 2020-21 shows a contraction of 22.6% which is one of the major reasons for the revenue shortfall in GST. The GST compensation due to states stands at over …

GST compensation due to States is ₹1.51 lakh cr.
4 years, 4 months ago

GST compensation due to States is ₹1.51 lakh cr.

The Hindu  

The GST collection during April-August declined on account of the COVID-19 induced lockdown, and the compensation due to States stands at over ₹1.51 lakh crore, Minister of State for Finance Anurag Singh Thakur said on Monday. The provisional GST compensation due to States and Union Territories for 2020-21 was highest for Maharashtra at ₹22,485 crore, followed by Karnataka, Uttar Pradesh, …

GST Compensation Due to States Stands at Rs 1.51 Lakh Crore, Maharashtra Leads: Anurag Singh Thakur
4 years, 4 months ago

GST Compensation Due to States Stands at Rs 1.51 Lakh Crore, Maharashtra Leads: Anurag Singh Thakur

News 18  

The GST collection during April-August declined on account of COVID-19 induced lockdown, and the compensation due to states stands at over Rs 1.51 lakh crore, Minister of State for Finance Anurag Singh Thakur said on Monday. The provisional GST compensation due to states/UTs for 2020-21 was highest for Maharashtra at Rs 22,485 crore, followed by Karnataka, Uttar Pradesh, Gujarat and …

GST compensation row: 13 states submit borrowing option to Centre to fund shortfall
4 years, 4 months ago

GST compensation row: 13 states submit borrowing option to Centre to fund shortfall

India TV News  

As many as 13 states ruled by the BJP and parties that have supported it on various issues have submitted their borrowing options to the Centre to meet the GST revenue shortfall. The Centre late last month gave two options to the states to borrow either Rs 97,000 crore from a special window facilitated by the RBI or Rs 2.35 …

Entire GST compensation owed to states will be honoured: Union government
4 years, 4 months ago

Entire GST compensation owed to states will be honoured: Union government

Live Mint  

The entire sum of compensation owed to states on account of shortfall in collections of Goods and Services Tax will be “honoured”, the union government said on Monday. The clarification by the union government just ahead of the GST Council meeting on 19 September, could potentially defuse the ugly face off witnessed in the last meeting between the centre and …

The Hindu Explains | What is the GST compensation due to States?
4 years, 4 months ago

The Hindu Explains | What is the GST compensation due to States?

The Hindu  

September 05, 2020 08:58 pm | Updated September 06, 2020 12:14 am IST The story so far: The 41st meeting of the GST Council was held on August 27 with the singular agenda of finding a solution to the question of how best to ensure that the compensation payable to the States as part of the implementation of the Goods …

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