Gst Compensation

Gujarat yet to get Rs 9,136 cr as GST compensation from Centre: Minister

Gujarat is yet to get Rs 9,136.26 crore as Goods and Services Tax compensation from the Union government, the state Assembly was informed on Monday. During discussion on the issue in the House, senior Congress leader Arjun Modhwadia said Gujarat was losing an average Rs 15,000 crore every year after the GST Act came into force and sought information of pending GST compensation. Responding to the question, state Finance Minister Kanubhai Desai informed the House Rs 9,136.26 crore was pending by way of GST compensation. "For the year 2021-22 and 2022-23, Gujarat has claimed Rs 30,400 crore as GST compensation. The Centre has so far paid Rs 21,264 crore while payment of Rs 9,136 crore is still pending. Of those Rs 21,264 crore, the Centre has paid Rs 4,200 crore in cash and Rs 17,045 crore as loan. The Centre will pay the interest on that loan through cess fund," Desai told the Assembly. This cess is collected from various products, such as tobacco, coal and soft drinks, for the purp

GST compensation to some states delayed due to lack of AG certificate: FM

Union Finance Minister Nirmala Sitharaman on Monday said GST compensation to some states is delayed due to non-availability of AG's authenticated certificate, and that Kerala has not sent even a single such certificate since 2017-18. Replying to a supplementary question, she also said that Rs 86,912 crore has been released for the Goods and Services Tax (GST) compensation payable to all states up to May 31, 2022. She said as per law, GST Council decides to whom the GST compensation is to be released, not by the central government. AG's certification is (mandatory) by law between the Centre, states and the AG (accountant general), and it is an agreed process. So, unless the authentication is given by the AG.. she said. The finance minister said if there is any delay of getting the AG's authentication, it is a matter between the AG and the state government concerned, and they have to sort it out. If between them there is a problem, the authentication certificate gets delayed in reac

GST compensation: Centre owes us Rs 2,409 crore, says West Bengal

The West Bengal government on Friday night said the Centre owes it Rs 2,409.96 crore, responding to Union Finance Minister Nirmala Sitharaman's statement that the state has not sent GST compensation cess claim with accountant general (AG) certificate from 2017-18 to 2021-22. Replying to assertions that West Bengal's dues have been neglected, Sitharaman in Parliament said GST compensation to states is given when the audited figures are provided but West Bengal has not submitted those since 2017. "....the Union FM made a statement that West Bengal has not sent GST compensation cess claim with AG certificate since 2017-18 to 2021-22. The state government does not agree with the statement...," it said in a statement. "For West Bengal, so far, compensation has been paid on net basis for only two years 2017-18 & 2018-19. For the rest of the periods (FY 2019-20, FY 2020-21, FY 2021-22) & the period 01.04.2022 till 30.06.2022, compensation has been released based on gross revenue. If .

Bihar govt seeks GST compensation extension for another five years

The Bihar government on Wednesday urged the Centre to consider extending for another five years the GST compensation awarded to states, which was discontinued last year. State Finance Minister Vijay Kumar Chaudhary flagged it as one of the expectations from the upcoming Union budget. "Several other concerns were also raised by me at Union Finance Minister Nirmala Sitharaman's pre-budget meeting with state representatives. One of these was, of course, the long-standing demand for special category status to Bihar," Chaudhary told PTI in an interview. "Another thorny issue has been the increasing load on the states with regard to centrally sponsored schemes. Earlier, the Centre used to bear 90 per cent of the total expenditure," he said. The ratio has "changed" and, now, states are required to "bear 50 per cent of the financial burden", Chaudhary claimed. "This is not proper. After all, the Centre claims all credit for such schemes", said the JD(U) leader, whose party snapped ties wi

J'khand CM Soren demands 5 more years of extension for GST compensation

Jharkhand Chief Minister Hemant Soren on Wednesday sought a five-year extension for the Goods and Services Tax (GST) compensation to the state beyond June 2022, claiming that the state was facing a revenue shortfall to the tune of Rs 5,000 crore per annum. He also hit out at the Centre for allegedly not clearing outstanding dues of Rs 1.36 lakh crore to the state from Coal India Limited. Soren who became the head of a JMM-led dispensation in 2019 told a press conference here that if he remains the chief minister for 10 years, Jharkhand will no longer be called a backward state. "We have been facing a severe financial crunch. Our challenges have increased. The state faces a loss of Rs 5,000 crore per annum. We have demanded that the GST compensation period be extended for five years," Soren said. When a nationwide GST subsumed 17 central and state levies from July 1, 2017, it was decided that states will be compensated for any loss of revenue from the new tax for five years. That ..

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Centre releases Rs 17k cr GST compensation to states, says FinMin

The central government has released Rs 17,000 crore to states towards balance GST compensation, taking the total amount released so far this fiscal to over Rs 1.15 lakh crore, the Finance Ministry said on Friday. "With this release, the Centre has released, in advance, the entire amount of Cess estimated to be collected this year till March-end available for payment of compensation to States," the ministry said in a statement. Goods and Services Tax (GST) was introduced in the country with effect from July 1, 2017, and states were assured of compensation for the loss of any revenue arising on account of the implementation of GST for a period of five years. For providing compensation to states, a cess is levied on certain goods and the amount of cess collected is credited to the compensation fund. The central government released an amount of Rs 17,000 crore to states/UTs on November 24, 2022, towards the balance GST compensation for the period April to June 2022. The total amount of

Top Headlines: GST compensation to states; battle for 5G networks, and more

The Centre may release about Rs 35,000 crore to states as GST arrears by September-end, Business Standard has learnt

Centre may release Rs 35,000 cr to states as June GST compensation

GST compensation has remained a sticking point between the Centre and states

Centre advances devolution as states hunt for funds, transfers Rs 1.16 trn

Money will help carry out their capital expenditure and welfare spending plans

NITI Aayog meeting: Punjab wants MSP for farmers; Baghel GST compensation

From farmers' plight to GST revenue, chief Ministers of States raised several issues in the 7th Governing Council meeting of NITI Aayog, chaired by Prime Minister Narendra Modi

States seek a raise in central taxes, call for extending GST compensation

NITI Aayog is mandated to boost cooperative federalism in the country

Baghel seeks extension of GST compensation for 5 years at NITI Aayog meet

Chhattisgarh Chief Minister Bhupesh Baghel Sunday reiterated his demand to the Centre seeking a five-year extension for the compensation paid to states for revenue shortfall due to GST implementation

Aiming for cooperative federalism, govt created Centre-states mistrust

There is no love lost between the Centre and the states, particularly those ruled by the Opposition parties on various issues

Centre has cleared Rs 8,800 crore GST dues, rest to be paid soon: Bommai

Bommai said the central government has made it clear that the GST compensation can be given only for five years and cannot be extended further.

Few states have sought extension of GST compensation for 5 years: FM

GST Council has recommended extending the period of levy of GST Compensation cess beyond June 2022 to cover the entire shortfall as well as servicing the back-to-back loan released to states

No GST compensation: Will the Centre find another way to give states money?

It is also important to see which states can finance a reasonable portion of their regular expenditure with their own revenue

Extend period of GST compensation to states by 5 years: Rajasthan CM Gehlot

Rajasthan CM Gehlot demanded that the Centre should extend the period of GST compensation by 5 years from June 2022 to June 2027 in view of the critical financial position due to the Covid-19 pandemic

GST council meeting takes no decision on extending compensation to states

New rates for some items, removal of exemptions with effect from July 18

Surat's textile hub consolidated as small players failed to survive GST

This ground report from the diamond city captures the travails of small-scale units