Important meeting of GST Council on Monday

The important meeting of the GST Council is going to take place on Monday. According to the information received from the sources, in the same meeting of GST, a final decision has to be taken on both the issues proposed by the central government for compensation. As of now, no non-BJP ruled states except Odisha and Puducherry have accepted both the Center’s proposals for GST compensation. On the other hand, 21 states have agreed to the first proposal out of 2 of the Center. Under this proposal, the states will be given a loan from the RBI with the help of the Finance Ministry, which they will repay the cess for an extended period.

The central government will provide this loan to the states through the RBI. Arrangements will also be made that the states levy cess for the extended period for repayment of this loan, so that there is no problem in paying its interest.

read more :-Is Blocking of ITC on Non-Filing of GSTR-3B by Supplier Correct??

States have been facing difficulties in paying compensation since August 2019 when the reduction in cess reduction. The Central Government has subsequently had to use the amount of cess deposited in 2017-18 and 2018-19 to pay compensation. The Central Government has released Rs 1.65 lakh crore as compensation for 2019-20, while the cess collection during this period has been just Rs 95,444 crore. Earlier, the amount of compensation in 2017-18 and 2018-19 has been Rs 41,146 crore and Rs 69,275 crore respectively.

INSTALL TAX CONCEPT APP

Do you wish to advertise with us ? write to gouravdevelopers@gmail.com

You can also submit article by sending to taxconcept4@gmail.com