Finance Minister Nirmala Sitharaman Announced, “GST compensation dues cleared”.
At a GST rate-setting council meeting, Finance Minister Nirmala Sitharaman confirmed that the government will be covering the entire Goods and Services Tax (GST) compensation dues of Rs 16,982 crore, today.
GST Compensation Dues Cleared
“The pending balance of GST compensation, which amounts to a total of Rs 16,982 crore, will be cleared in its entirety, as announced today by the Finance Minister, Nirmala Sitharaman,” stated the minister.
Finance Minister Nirmala Sitharaman announced that the government will release Rs 16,982 crore from its own resources to clear the entire GST compensation dues, which will be recouped from future compensation cess collection. She also noted that this amount is not currently available in the compensation fund. This decision was made ahead of the general election next year, following Ms Sitharaman’s presentation of her final major Union Budget on February 1.
According to the Finance Minister, Nirmala Sitharaman, the payment will cover the five-year compensation dues.
The Goods and Services Tax (Compensation to States) Act 2017 authorizes the government to levy a cess, which will be paid to the states to compensate for revenue losses since the implementation of GST on July 1, 2017. Several states have incurred losses due to the transition to GST, and they will be compensated for a period of five years, beginning from July 2017.
GST COUNCIL MEETING
Among the decisions made by the GST Council, today are:
- The GST rate for tags, tracking devices, and data loggers has been eliminated, down from 18%.
- No GST will be charged on the supply of “coal rejects” to or from a coal washery.
- The reverse-charge mechanism will be applied to the taxation of services provided by courts and tribunals.
- Rationalization of late fee for delayed filing of annual returns.
- Reduction of GST on pencil sharpeners from 18% to 12%.
- Exemption of GST on loose rab gur (liquid jaggery) previously taxed at 18%.
- Decrease of GST on pre-packaged and labeled rab gur (liquid jaggery) from 18% to 5%.
- Following the recommendation of a Group of Ministers (GoM), the GST Council has approved capacity-based taxation on paan masala and gutka.
- The report by the GoM on the establishment of tribunals has been approved by the GST Council with minor changes. Recommended reading: George Soros, Billionaire at Odds with Modi Govt., the Breaker of the British Pound