Tally for Practicing CAs Gold Edition (Multi User) Tally for CAs in Industry Silver Edition (Single User) Tally Renewal (Auditor Edition) Need Tally for Clients? (Tie-up with us!!!)
GST - Goods and Services Tax »
 GST portal experiences technical failure on last day of September return filing; several Twitter users complain
 GST: CBIC notifies due date of Form GSTR-3B for October 2020 to March 2021
 E-Way Bill generation facility to be blocked for Taxpayers who failed to file GSTR-3B for 2 or more Tax period from Oct 15
 How borrowing options narrowly missed being put to a vote in GST Council meeting
 8 decisions of the GST Council to impact businesses: EY
 Centre can strengthen federalism by compensating states fully for GST shortfal
 Centre calls truce with states on GST
 GST council meeting today: A look at 7 key items on the agenda
 What is GST Council deliberating today?
 New TCS to be levied on total sales consideration, including GST
 Extended deadlines for FY19 returns: October 31 for GST, November 30 for income tax
 GST returns information to be included in Form 26AS
 How to file GST returns online: Step-by-step guide
 What is GST e-invoicing and how does it help businesses?
 GST: Rajasthan High Court quashes order freezing Bank Account beyond 1 year

Centre calls truce with states on GST
October, 06th 2020

The Central government on Monday sought to buy peace by accepting states’ demand for full compensation of their shortfall in tax receipts because of the implementation of goods and services tax (GST) or the coronavirus pandemic, but a final call on how states will be compensated will be taken by the GST Council next week.

The federal tax body, which met via videoconference on Monday, decided to extend the GST cess on items such as cars, tobacco and aerated drinks beyond 2022 for as long as needed to repay the debt raised to make up for states’ tax losses.

Union finance minister Nirmala Sitharaman and chairperson of GST Council assured states of full compensation and said that the Centre will disburse to states 20,000 crore collected as compensation cess so far this year tonight itself.

Sarvesh Kumar Sharma/Mint
View Full Image
Sarvesh Kumar Sharma/Mint


“Nobody is going to be denied compensation for losses arising out of implementation of GST or due to covid impact," said the minister. States’ GST revenue shortfall this year either due to GST implementation or due to covid will be met completely," the minister assured.

Sitharaman’s assurance is aimed at pacifying opposition-ruled states, including Kerala, Punjab and Delhi, that demanded activation of a dispute resolution mechanism to settle the differences over the issue, though it might take time for the political fault lines to get mended.

Kerala finance minister Thomas Isaac said in a tweet after the council meeting that 10 states had demanded that full compensation should be paid this year as per clauses in the law and that the Centre should borrow. “Decision was postponed to 12 October," Isaac said.

Sitharaman said the borrowing to be made by states to meet the shortfall will be outside their already enhanced borrowing ceiling of 5% of gross state domestic product. “Neither the interest nor the principal needs to be paid from states’ other resources. The cess is going to take care of it…The entire compensation is going to be paid. We may have differentiated between covid-related and GST-related. Both are getting paid," the minister said.

The council also decided to release 25,000 crore dues for FY18 by the end of next week to states which received less tax revenue from inter-state trade (IGST) due to adoption of an ad hoc disbursement formula.

From 1 January, businesses with sales up to 5 crore will be allowed to file quarterly returns and pay taxes on a monthly basis.

The council also decided to exempt 18% GST on satellite launching services aimed at boosting the domestic industry. The move is expected to benefit Isro and Antrix Corp.

The council also decided on the road map for revamping the return filing process with an emphasis on ease of doing business and better compliance.

“The continuing efforts to simplify compliance, including those related to automatic population of various figures in returns from January 2021 are good for business. However, there should be a facility during the initial periods to take care of system errors," said M.S Mani, senior director, Deloitte India.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting