Page 2 - Gst Compensation

Top headlines: GST on casinos deferred; marketing freedom to oil producers

Briefing reporters about deliberations at the two-day meeting of the GST Council, Finance Minister Nirmala Sitharaman said finance and other ministers of 16 states spoke on the compensation issue

Opposition-ruled states demand continuation of GST compensation for 5 years

As the GST Council commenced here on Tuesday, the states have also cited a recent Supreme Court ruling that decisions made by the Council are not binding and states need not stick to them.

Govt announces extension of GST compensation cess levy till March 2026

The government has extended the time for levy of GST compensation cess by nearly 4 years till March 31, 2026. As per the Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022, notified by the finance ministry, the compensation cess will continue to be levied from July 1, 2022 to March 31, 2026. The levy of cess was to end on June 30 but the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state FMs, decided to extend it till March 2026 to repay the loans taken in the last two fiscal years to make up for the shortfall in their revenue collection. After the 45th GST Council meeting in Lucknow in September last year, Sitharaman had said the regime of paying compensation to states for revenue shortfall resulting from subsuming their taxes such as VAT in the uniform national tax GST, will end in June 2022. However, the compensation cess, levied on luxury and demerit goods, will continue to be collected till March 2026 to repay the ...

Extend GST compensation to states for next 3-5 yrs: Amit Mitra urges FM

Ex-West Bengal minister Amit Mitra has written to Union Finance Minister Nirmala Sitharaman, urging her to continue with the GST compensation to states for another 3-5 years after this month

Extend GST compensation to states by 3-5 yrs more: Amit Mitra to Sitharaman

Unforeseen battle against pandemic has put states' fiscal health under huge stress, he says in letter to FM

Govt releases Rs 86,912 cr to states, clears entire GST compensation dues

To meet the shortfall in GST compensation to states, the Centre said that it borrowed Rs 1.59 trillion in FY22 and Rs 1.1 trillion in FY21 from the market and passed them on to the states

Maharashtra to lose Rs 30,000 cr if GST compensation not extended: Official

If the Centre does not extend the GST compensation from July this year, Maharashtra, which pays the maximum taxes, will lose Rs 30,000 crore annually, a senior official said

Bhupesh Baghel writes to PM Modi, seeks GST compensation for 10 more years

Chhattisgarh Chief Minister Bhupesh Baghel on Thursday urged Prime Minister Narendra Modi to continue the present compensation grant system of Goods and Services Tax (GST) for another ten years.

Uttarakhand CM Pushkar Singh Dhami meets PM Modi, Amit Shah, J P Nadda

He also submitted a list of demands in the meeting with Defence Minister Rajnath Singh

Centre releases Rs 6,000 cr to states as GST compensation

Till now, 70% of the total estimated Goods and Services Tax compensation shortfall has been released to the states

Many states request GST compensation extension beyond 5 years: FM

Many states have requested extension of the compensation mechanism under the GST beyond June 2022, Finance Minister Nirmala Sitharaman said on Monday. Under the Goods and Services Tax (GST) law, states were guaranteed to be compensated bi-monthly for any loss of revenue in the first five years of GST implementation from July 1, 2017. The shortfall is calculated assuming a 14 per cent annual growth in GST collections by states over the base year of 2015-16. The 5-year period ends in June 2022. The compensation amount to be paid from the compensation fund is arrived at by levying cess on top of the highest tax slab on luxury, demerit and sin goods. In a written reply in the Lok Sabha, Sitharaman said the central government is committed to giving GST compensation to states/UTs for 5 years as per the Constitutional provision. To a query whether the government has received proposals from state governments requesting extension of compensation mechanism for another five years in view of

GST compensation cess period already extended till March 2026: FM

The Union Minister was responding to a query on Karnataka Chief Minister Basavaraj Bommai's statement requesting the Centre to extend the GST compensation period, which ends in June.

Karnataka CM Bommai asks Centre to extend GST compensation period

After presenting the Rs 2,65,720-crore budget of the State for 2022-23, he told reporters that it was revenue surplus but due to Covid-19 it has become revenue-deficit

Extending GST compensation period may push back rate rejig: CBIC chairman

In a Q&A, CBIC chairman Vivek Johri talks about if revenues are to reach the levels where compensation would perhaps no longer be an issue, then GST rate structure, exemptions too need to be reviewed

Ajit Pawar urges Centre to extend GST compensation to states for two years

Maharashtra Deputy Chief Minister and state Finance Minister Ajit Pawar on Wednesday urged the union government to extend the period of GST compensation from Centre to States for two more years

Raise your share in centrally-sponsored schemes: States to FM Sitharaman

States also want GST compensation extended till 2027

States demand extension of GST compensation for another 5 years

The GST compensation to states for revenue shortfall resulting from subsuming of local taxes such as VAT in the uniform national tax Goods and Services Tax (GST) will end in June next year

About Rs 52,000 cr GST compensation pending to states till Sept: FinMin

Nearly Rs 52,000 crore of GST compensation was due to the states as of September 2021, Parliament was informed on Monday. Giving details of Goods and Services Tax (GST) compensation released and pending to be released as on November 24, 2021, Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that Rs 1,10,208 crore and Rs 1.59 lakh crore was released to the states as back to back loan in 2020-21 and 2021-22 fiscals, respectively. Total GST compensation pending till September 2021 stood at Rs 51,798 crore, he said. This includes Rs 13,153 crore pending to Maharashtra, Rs 5,441 crore to Uttar Pradesh, Rs 4,943 crore to Tamil Nadu, Rs 4,647 crore to Delhi and Rs 3,528 crore to Karnataka. States of Arunachal Pradesh, Manipur, Mizoram and Nagaland do not have any GST compensation pending from the Centre. In reply to a separate question, Chuadhary said the Centre has released Rs 17,000 crore on November 3, 2021, towards GST compensation to states from the compensation

Centre releases Rs 17,000 crore to states as GST compensation

With this, the total amount of compensation released to the states/UTs during 2021-22 so far is Rs 60,000 crore

GST shortfall: Centre releases Rs 1.6 trillion to states this fiscal year

This release of funds as back-to-back loans is in addition to the bi-monthly GST compensation being given out of cess collection.