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 can strengthen federalism by compensating states fully for GST shortfal
October, 06th 2020

The GST Council is yet to resolve the issue of compensation to states on account of the forecast shortfall in revenue in the current financial year. The only issue which was resolved in Monday’s meeting is the decision to extend a special cess on some goods beyond 2022, to help pay for the current year’s estimated shortfall.

What is clear now is that the Centre is unwilling to borrow on its account and make good the shortfall of states. States now have to settle for a compensation which will not cover the actual shortfall or opt for a package where that may be covered if they borrow on their own account. If states opt for the second package, they have to bear the interest on the borrowing. In addition, as their quantum of borrowing has already been fixed by the Centre, they will find themselves squeezed when it comes to raising resources.

The law states that the GST Council will decide on what to do in the case of a shortfall in the Compensation Cess. However, as the Centre has a unilateral veto power, for all practical purposes it is the Centre which decides in such a situation. The unfortunate fallout is that the current friction in the GST Council may spill over to other areas and affect the pace and quality of economic reform in future. The Centre can still avoid it by upholding the spirit of cooperative federalism, and using its superior resource raising powers to compensate states fully.

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