GST Revenues

Petition says arrest made despite a CBIC circular saying that no tax liability is there in circular trading

GST collections were to the tune of Rs 1.43 trillion in August; in July it was around 1.49 trillion

The GST compensation remains a bone of contention between the Centre and states. So, as the GST collections continue to soar, will it hit the states' case which has been demanding its extension?

Extending compensation is a topic that has remained a sticking point in India's federal structure, with not only opposition states but also BJP-governed states speaking about it

Collection remains above Rs 1.4 trn for fifth straight month

On a year-on-year basis, the July GST collection witnessed a 33 per cent jump

Since the collections were till 6 pm on January 31, some more money is expected to come into the government coffers for the month

GST collections for January touched an all-time high of about Rs 1.20 trillion, the Finance Ministry said on Sunday.

This leaves Jharkhand as the odd one out

States could borrow via a special window centre will facilitate through the RBI or they may raise debt from the market, says finance ministry

Even BJP-ruled states like Karnataka suggest central govt should borrow to compensate states

Set to seek higher borrowing limits as revenues dry up

The government has rung up just about Rs 95,000 crore as GST in April and May together, and that is less than half compared with the collection in the corresponding months last year.

All the states may see around Rs 5,000 crore of GST collections in 2020-21

At the time of implementation of the Goods and Services Tax (GST) on July 1, 2017, the Centre had promised to compensate states for loss of revenue for five years at an agreed formula

Wide variations in growth estimates for state GST raise serious questions about the assumptions on which the projections were made

The idea was discussed during the presentation given by chairman of the 15th Finance Commission (15th FC) N K Singh, in the previous GST Council meeting

The fund is used to compensate the states for revenue shortfall suffered due to roll out of the new indirect tax

If states' GST revenue does not grow by at least 14%, the Centre pays them the difference, after every two months

The compensation requirements have increased significantly and are unlikely to be met from the compensation cess being collected, it said