Sep 20, 2021 03:07 PM IST

Explained | How compensation for GST shortfall after June 2022 may create centre-state rift

The centre's stand, that compensation will not be extended beyond June 2022, as provided in the Constitutional amendment that introduced GST from July 2017, is starkly different from what politicians and officials from opposition-ruled states told media after the GST Council meeting in Lucknow on September 17.

GST Council | Centre says no compensation beyond June 2022; states take a different view

Addressing the media after the meeting of the GST Council in Lucknow, Sitharaman and Bajaj said that while compensation cess will be collected till March 2026, it will be to pay back the interest and principal of the Rs 2.69 lakh crore total that the centre borrowed and will borrow in 2020-21 and 2021-22, and transferred to states.

GST Council Meet | GST exemption on Covid essential medicine extended till December

The items on which rate cuts were made included Remdesivir, Tocilizumab, medical grade oxygen, oxygen generator, ventilators, masks, covid testing kits, oximeters, hand sanitizers, cremation furnaces, ambulances, temperature checking devices and others.

Packed agenda for first in-person GST Council meeting in nearly two years

The Council is expected to discuss the extension of compensation to states beyond 2022, rationalizing the inverted duty structure on supply chain of certain items, bringing petrol and diesel under GST, extending the GST exemption on Covid-essential items, and deciding the future of profiteering cases, since the tenure of the National Anti-Profiteering Authority ends in November.

August GST collections come in at Rs 1.12 lakh crore

This is the second consecutive month that GST collections are above the Rs 1 lakh crore mark, indicating that economic recovery post the second wave of Covid-19 is well underway.

FM Nirmala Sitharaman expects retail inflation to be within MPC's comfort range going ahead

The finance minister also said that the next meeting of Goods and Service Tax (GST) Council will deal with the details of extension of compensation to states beyond 2022.

Private sector ‘animal spirits’ still missing, more investment needed: Revenue Secretary

Addressing the annual summit of industry body CII, Tarun Bajaj said that the resilience shown by India Inc through its corporate results was not translating to more investment on the ground.

EXCLUSIVE | Next GST Council meeting likely to convene end-August; compensation extension on agenda

When the GST came into being, States had agreed to join the new tax regime provided they were compensated for any revenue loss in the first five years, from July 2017 to June 2022.

Why GST collections in June fell

Four Years of GST: Council should now fulfill unfinished agenda, say experts

While GST has changed India's taxation system for the better, there are still many pending issues which analysts need to be prioritised. These include bringing real estate and petroleum products under GST, sorting out the issue of compensation to states, and providing stability in assessment and disputes.

EXPLAINED | How does the govt monitor profiteering after GST rates are cut?

Experts say the National Anti-Profiteering Authority’s (NAPA) move to ensure that GST cuts on COVID-related supplies are passed on to the customers is a step in the right direction, and the law has a provision to ensure that customers are not denied the benefit.

EXPLAINED | The concerns raised by some state FMs at the last GST Council meeting

Some of the opposition Finance Ministers publicly spoke about not being heard at the GST Council meeting, prominent among them being Punjab Finance Minister Manpreet Singh Badal and West Bengal Finance Minister Amit Mitra.

44th GST Council Meeting: Here are the key decisions taken today

The GST on ventilators, medical-grade oxygen, COVID-19 testing kits, oxygen concentrators, high flow nasal canula device, pulse oximeters and BiPAP machine have been brought down to 5 percent from 12 percent at present.

GST Council: Group of Ministers suggests rate cuts on some COVID essentials

The Group of Ministers (GoM), formed after the last GST Council meeting on May 28 to deliberate on possible reductions in COVID-related items, has however not suggested a reduction in COVID-19 vaccines, the rate of which stands at 5 percent. The GoM submitted its report on June 8.

Even limited available data shows May was bad for the economy

Chief Economic Advisor Krishnamurthy Subramanian admitted that regional lockdowns and a devastating second wave of pandemic had hit the economy in May 2021, compared to April and March

EXCLUSIVE | New Group of Ministers will discuss zero-rating of COVID items

The proposal of zero-rating covid items was first proposed by by Bharatiya Janata Party’s Rajya Sabha member and former Bihar Deputy Chief Minister Sushil Kumar Modi earlier this week and was backed by experts.

GST Council Meeting: Major tax breaks with 'zero rating' of COVID essentials feasible, experts say

43rd GST Council Meeting: GST Council’s meeting on May 28 can consider total tax exemption for medical supplies needed for combating COVID-19, and may also discuss tax tweaks to help sectors that have been hit hard by the second wave as well as compensation for states, experts say.

GST Council meeting on May 28: Finance Minister Nirmala Sitharaman to chair video conference as states seek rate cuts on COVID-19 supplies

The agenda of the GST Council meeting on May 28 will be the GST rates on various medical devices, essential drugs, and other COVID-19-related issues.

Petrol, diesel under GST: Centre keen to discuss possibilities with states

While FM Nirmala Sitharaman said that there is no concrete proposal, Moneycontrol has learnt that the Centre would like to start discussions with states. Policymakers in Finance Ministry acknowledge it will be a long process to implement what they consider an 'overdue reform'

GSTN rolls out auto-populated monthly tax returns forms

GSTN, the firm that processes GST returns, released a statement saying that the auto-populated tax return forms will be available from the October tax period onwards

Growth under UPA regime 'not bad', says PM Modi’s adviser Sanjeev Sanyal

Sanyal was referring to the soaring inflation, widening fiscal and current account deficit and massive lending from the banks that were ailing India's economy under the UPA regime

Patanjali distributors under anti-profiteering lens for not passing GST benefits: Report

Over the past month, the NAA has issued notices to about 10 of Patanjali’s biggest distributors for not reducing prices in line with the cut in GST

GST Council meet: MSME exemption limit doubled to Rs 40 lakh, composition scheme threshold now Rs 1.5 cr

The GST Council has approved the composition scheme for services and hiked annual composition limit to 1.5 crore effective from April 1

GST adoption could raise India's GDP to over 8%: IMF

The adoption of the GST could help raise India's medium-term GDP growth to over eight per cent and create a single national market for enhancing the efficiency of the movement of goods and services, the IMF said today.

Gold loses sheen in 2016, demand falls 21% in India: WGC

"The industry faced a number of challenges in transitioning to the emerging, structurally transparent system-be it the PAN card requirement, the excise on jewellery, demonetisation or the publicity around income disclosure schemes," said Somasundaram PR, Managing Director, India, World Gold Council.