Faced with a sharp decline in GST collections due lockdown and disruptions in economic activities across the country, the government is looking at paying GST compensation to states using a portion of its borrowings and repaying it by collecting cess in the sixth or further subsequent years.
Under the GST law, states are guaranteed full compensation for any revenue loss for the first five years after the introduction of the goods and services tax (GST) in July 2017.
The compensation is a gap between actual revenue collected and projected revenue. The projected revenue is revenue growth of 14 per cent for states per year over base year 2015-16.
As per the GST Act, full compensation to the states has to be paid for a period of five years till FY22 only through the compensation fund that gets its funds through a levy of GST compensation cess on few items. However, with funds not getting enough collections since August 2019, the GST compensation to states have been delayed with Centre now looking at getting the GST Council nod for extending the levy of compensation cess at least a couple of years beyond the cut-off fifth year to make good the gap in cess collection actual compensation payment to states.
“This (extending the duration of GST compensation cess) has been discussed in the past to ensure states are paid full compensation for any loss of revenue in first five years of the implementation of the new indirect tax regime while the Centre repays its liabilities through cess collections in subsequent years. The GST Council may explore the option again at its next meeting,” government sources privy to the development said.
In case the amount in the GST Compensation Fund fell short of the compensation payable in any bimonthly period, the GST Council shall decide the mode of raising additional resources, including borrowing from the market, which could be repaid by a collection of cess in the sixth year or further subsequent years, sources added.
The situation on GST revenue has worsened in the month of April, with several states indicating a shortfall in collections to the tune 80-90 per cent of average monthly collections during this time of the year. In fact, Delhi has said its GST collections may end up at a mere Rs 300 crore in April against a collection of Rs 3,500 crore in the same month previous year. Other states like Tamil Nadu, Assam, West Bengal, Andhra Pradesh also facing severe revenue decline due to shrinking economic activities during the Covid-19 induced lockdown.
With economic activity and GDP growth projected to remain subdued for the most part of FY21, the Centre is looking at all possible means, how it could meet its constitutional obligation of compensating the states for their revenue loss.
After February, when Centre released GST compensation of Rs 19,950 crore for the months of October and November, 2019, it is only now that the government has released Rs 15,340 crore despite insignificant tax collections due to the relief provided for filing of returns and payment of taxes owing to lockdown. This amount includes the second instalment of GST compensation for October and November to states of over Rs 14,100 crore leaving compensation dues for December-January period still unpaid.
The monthly compensation requirement for states in 2020-21 is being pegged at Rs 20,250 crore, government sources said leaving a big gap between what needs to be paid and what is being collected. Even in FY21, monthly cess collections could be a low of Rs 7,000-8,000 crore or lower.
In 2019-20, the Centre had released Rs 120,498 crore GST compensation to states while it had collected only about Rs 95,000 crore in the form of compensation cess.
According to previous releases of the Finance Ministry, in the FY 2017-18 a total GST compensation cess of Rs 62,611 crore was collected, out of which a sum of Rs 41,146 crore was released to the States/UTs as GST compensation. After that, in the FY 2018-19, Rs 95,081 crore were collected as GST compensation cess out of which Rs 69,275 crore were released to the States and UTs as GST compensation. As per the releases of the finance ministry, as on March 31, 2019 an amount of Rs 47,271 crore GST compensation cess collected had remained unutilized after the release of GST compensation to the States and UTs in the FYs 2017-18 and 2018-19.
Since the end of August 2019, the Central government has started realising the impending precarious position in paying GST compensation to the States and UTs as the compensation cess requirement was being double of the average monthly cess collection.
Sources said that though GST Council also has the option to either bring more items under the cess base by expanding the base of GST cess items or to increase cess rates on the existing items, any increase in compensation cess on few items could only yield about Rs 2000-3000 crore a year.
Therefore, Council in its earlier meeting also discussed other options to either forego full cess compensation which was increasing at 14 per cent per annum or to go ahead with whatever compensation is available. One more option looked was to raise the tax rate on items by rationalisation of rates by shuffling slab rates.-IANS News
where can i buy generic clomiphene without dr prescription cost cheap clomid online clomid prescription uk order cheap clomid buying generic clomiphene tablets where can i buy cheap clomid tablets where to buy generic clomiphene tablets
Thanks on putting this up. It’s okay done.
More articles like this would pretence of the blogosphere richer.
zithromax 500mg sale – tetracycline 500mg uk buy flagyl 400mg generic
purchase semaglutide online cheap – periactin 4mg pills periactin 4 mg without prescription
buy motilium 10mg without prescription – order sumycin pills order flexeril pill
cheap amoxicillin – buy diovan 160mg online cheap combivent online buy
buy generic azithromycin online – buy tindamax 500mg buy generic bystolic for sale
order augmentin 625mg for sale – atbioinfo.com ampicillin sale
nexium order – https://anexamate.com/ nexium 20mg usa
warfarin 5mg generic – https://coumamide.com/ order cozaar 25mg online cheap
cheap meloxicam 7.5mg – https://moboxsin.com/ purchase mobic online
buy erection pills – fast ed to take site where to buy over the counter ed pills
amoxicillin pills – https://combamoxi.com/ purchase amoxil generic
buy diflucan without a prescription – https://gpdifluca.com/ diflucan ca
cenforce 50mg brand – https://cenforcers.com/ buy cenforce 100mg pill
where to buy generic cialis – https://ciltadgn.com/# cialis no prescription overnight delivery
order zantac 300mg online cheap – https://aranitidine.com/ buy ranitidine 300mg sale
order viagra online canada – https://strongvpls.com/# order viagra mexico
The reconditeness in this serving is exceptional. sitio web
More articles like this would remedy the blogosphere richer. https://buyfastonl.com/gabapentin.html
I couldn’t resist commenting. Profoundly written! https://ursxdol.com/clomid-for-sale-50-mg/
This is a question which is forthcoming to my heart… Many thanks! Faithfully where can I notice the connection details for questions? https://prohnrg.com/product/diltiazem-online/
This is the kind of criticism I positively appreciate. https://aranitidine.com/fr/ciagra-professional-20-mg/
With thanks. Loads of conception! https://ondactone.com/simvastatin/
Thanks for sharing. It’s outstrip quality.
https://doxycyclinege.com/pro/tamsulosin/
orlistat brand – janozin.com order generic xenical 120mg
The reconditeness in this piece is exceptional. http://polishcrazyclan.ugu.pl/member.php?action=profile&uid=356860
Greetings! Jolly serviceable par‘nesis within this article! It’s the crumb changes which choice make the largest changes. Thanks a lot quest of sharing! stromectol gale
Thanks recompense sharing. It’s first quality.
Bond-Film der EON-Reihe und der erste Film mit Daniel
Craig als James Bond aus dem Jahr 2006. Doch das spektakul�re Finale
mit einer b�sen �berraschung steht noch aus …
Im weiteren Verlauf des Spiels l�sst sich Bond einen Martini servieren,
der jedoch von Valenka in einem unbeobachteten Moment mit Digitalis versetzt wurde.
Für die deutsche Synchronfassung wurde The Look of Love
mit einem deutschen Text versehen und von Mireille Mathieu unter dem Titel Ein Blick von dir gesungen. Bereits 1954 entstand daraus
ein Fernsehfilm mit Barry Nelson als Jimmy Bond und Peter Lorre als seinem Gegenspieler Le Chiffre.
Bond ist so blind vor Liebe, dass er zu spät bemerkt,
dass Vesper Lynd mit Mr. White geheime Pläne macht und diesem das Pokergeld
übergeben will.
References:
https://online-spielhallen.de/admiral-casino-sicher-spielen-grose-gewinne/
You can not move on to a column containing 2 or more of
your opponents pieces. If you move on to a column contaning one of your opponents pieces their piece will be sent back
to the start. Please either enable Javascript for Cardgames.io from your
brower’s security settings, or upgrade to a more modern browser.
Unfortunately, all the games are coded in Javascript, and so our site cannot function without executing scripts.
We detected that something blocked cardgames.io from running Javascript files on the page.
The primary script that runs our games seems to
not have loaded, somehow.
On a similar note, you should also be sure to keep a keen eye out for any checkers that your
opponent has left in an isolated position. Doing so is essentially an invitation for your opponent to
knock the checker off the board, sending you back to
the starting point. Forgetting to stack checkers as
much as possible could mean that you have numerous isolated
checkers on the board. This can strengthen your relationship, even when playing virtually, as you’re playing together without outside
distractions getting in the way. You should also
keep an eye out for any checkers they leave in a single space so that you are able
to knock them off the board entirely. This can be achieved
by stacking checkers in adjacent corners, as it
means they need to roll a specific number on the die
to be able to move forward.
Please update to the latest version to continue playing our multiplayer games 😎.
Dedicating some time to playing backgammon can improve your logical thinking and reasoning skills.
If your opponent moves your tile to this place, then you cannot
move any other checker until the removed checker is brought back
into play. The player with the highest score goes first and begins to
move their checkers around the board. If only one of your
opponent’s checkers is placed here, landing on the closed point means you can remove their checker from the board.
Despite its long history, Backgammon remains a popular game in 2024, with millions of
online and offline players competing every day.
References:
https://blackcoin.co/online-gambling-in-australia-a-comprehensive-overview/
All features follow Australian guidelines for responsible gambling.
Leon believes that gaming should be safe, fair and under control.
The site also links to national support services such as
Gambling Help Online and the Australian Gambling Research Centre.
Leon Casino balances casino entertainment and sports betting under one roof.
Matches are short, results appear fast and statistics refresh automatically.
Virtual Sports use real video animations powered by an RNG system to decide match results.
Live betting’s always available and the odds adjust in real time.
Every event comes with competitive odds and fast markets that pay out instantly.
Leon Sportsbook really brings sports betting to another level for Australians.
References:
https://blackcoin.co/treasury-casino-a-comprehensive-overview/
gamble online with paypal
References:
http://icfoodseasoning.com
online casino with paypal
References:
https://www.workbay.online/profile/keiraparkhill9
betmgm WI betmgm-play betmgm California