new Delhi. After the 42nd meeting of the GST Council chaired by Finance Minister Nirmala Sitharaman on Monday (October 5), Sitharaman said that the compensation cess of Rs 20,000 crore will be distributed among the states tonight. Amid the growing demand for Goods and Services Tax (GST) compensation from states that are facing economic crisis due to corona and lockdown, Finance Minister Nirmala Sitharaman said that Rs 20,000 crore from compensation cess will be distributed among the states. At the same time, the IGST of 24 thousand crores was collected earlier, it will be given to the states by the end of next week.
GST Council will meet again on October 12
After the meeting, Finance Minister Sitharaman said that the GST Council has decided to continue the compensation cess even after June 2022. The Finance Minister said that the GST Council will meet on October 12 for further discussion on reduction in GST tax cess collection and compensation of states. Addressing a press conference after the meeting, Sitharaman said that only 20 states accepted option-1. He said, “We need to talk further.”
Relief to small taxpayers
After the GST Council meeting, Finance Secretary Ajay Bhushan Pandey stated that from January 1, taxpayers whose annual turnover is less than Rs 5 crore will not be required to file monthly returns i.e. GSTR 3B and GSTR-1. They will only file quarterly returns. He said that the GST Council’s decision to make returns for small taxpayers on quarterly basis instead of monthly basis would be a big relief for small taxpayers. Ajay Bhushan Pandey said that the GST Council has decided to exempt satellite launch services of ISRO and Antrix from the Goods and Services Tax Scope.
21 states supported Center on GST compensation issue
Explain that the non-BJP ruled states disagree with the Center on the issue of compensation. A total of 21 states, including BJP-ruled states, have supported the central government on the issue of GST compensation. However, states ruled by opposition parties such as West Bengal, Punjab and Kerala have not yet chosen the option given by the central government to raise debt.
In the current financial year, the revenue from the GST is estimated to decrease by Rs 2.35 lakh crore. According to the calculation of the central government, the implementation of GST is responsible for the reduction of just Rs 97 thousand crore, while the remaining Rs 1.38 lakh crore is due to Kovid-19. In such a situation, the central government gave two options to the states in August. Under this, states can either avail a loan of Rs 97 thousand crore with special facility provided by the Reserve Bank or can borrow Rs 2.35 lakh crore from the market. (Input-ANI)