Shortfall In GST Revenues

The Centre is committed to compensate states for five years for the revenue loss due to GST implementation as provided in the statute, Finance Minister Nirmala Sitharaman said on Tuesday.

Basavaraj S Bommai on Thursday demanded the Centre to extend the GST compensation period to states beyond 2022, for three more years

Move to help state govts spur capex amid pandemic

They have also sought an additional compensation of Rs 65,000 crore for FY21

GST Council should have addressed pressing issues

States' demand for the extension of the compensation period beyond June 2022 will be taken up in a separate meeting

The GST compensation of states is expected to widen to Rs 2.5-3 trillion in FY22 as against the cess collection of Rs 1 trillion estimated in the Budget

Tax sops on Covid supplies to also be on agenda at Council meet

GST Council must address the shortfall in collection

The electorate is most likely to rate the govt on its response to the flood, its management of the economy after GST, and its recent response to Covid-19

The Centre has released Rs 1.06 lakh crore to the states since October 2020 to meet GST compensation shortfall, the Finance Ministry said on Tuesday. The ministry has released the 19th weekly instalment of Rs 2,104 crore to 23 states and 3 Union Territories with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry), taking the total amount released so far under the special borrowing window set up in October last year to Rs 1.06 lakh crore. The remaining five states of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of Goods and Services Tax (GST) implementation. So far, an amount of Rs 1,06,104 crore has been borrowed by the Central Government through the special borrowing window at an weighted average interest rate of 4.8842 per cent, the ministry said in a statement. The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of ...

In a Q&A, the chairman of the 15th Finance Commission is emphatic that cooperative federalism remains robust and dwells on the possibilty of dividing agro infra cess between Centre and states

Govt must seize opportunity to reform holes in tax system

More than recovery, better compliance has improved collection

The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 trillion in revenue arising on account of implementation of GST

Centre to propose one a year tweaking; states say proposal is not enough, slabs need to be changed, experts call for flexibility to cater to immediate needs

This leaves Jharkhand as the odd one out

Congress-ruled Rajasthan has accepted the Centre's borrowing proposal to meet GST revenue shortfall and will get over Rs 4,600 crore through the special window. "The Government of Rajasthan has communicated its acceptance for Option-1out of the two options suggested by the Ministry of Finance to meet the shortfall in revenue arising out of GST implementation," the Finance Ministry said in a statement. With this the state will get Rs 4,604 crore through special borrowing window and also permission to raise additional Rs 5,462 crore through borrowings, it added. Before Rajasthan joined in, 21 states and 3 union territories (UTs) had opted for the borrowing plan proposed by the Centre to meet the Rs 1.83 lakh crore shortfall in Goods and Services Tax (GST) collection of states. Under the borrowing plan (Option-1), the Centre would borrow from market Rs 1.10 lakh crore to meet revenue shortfall on account of GST implementation. The remaining Rs 73,000 crore shortfall is estimated to be

Centre's decision to borrow doesn't fully address the GST issue

The additional amount for meeting the GST compensation shortfall shall be raised equally at the rate of Rs 55,000 crore under the 3 year and 5 year tenors