The tumultuous years of implementing goods and services tax (GST) in India seem to be over. This indirect and transaction based tax, implemented nationwide in July 2017, has settled in. Most of the teething issues, such as glitches in ‘invoice matching’ and delays in refund, which dragged on for years, have largely been dealt with. … Read more
The government issued a notification on Saturday extending the goods and services tax (GST) compensation cess until March 31, 2026. The cess was to end on June 30, 2022, five years after the single tax rolled out on July 1, 2017. The GST Council had last September decided on an extension to raise funds to … Read more
NEW DELHI: Twelve states including Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Madhya Pradesh, Meghalaya, Sikkim, Tripura, Uttar Pradesh, Uttarakhand and Odisha so far have opted for the first option offered by the centre — Rs 97,000 crore borrowing for compensation of revenue shortfalls due to goods and service tax (GST) transition. Manipur is the only … Read more
The revenue accruing from GST compensation cess goes to the states and the Centre cannot borrow on the security of the tax which it does not own, Finance Ministry sources said. The Centre and opposition-ruled states are at loggerheads over the financing of the Rs 2.35 lakh crore GST shortfall in the current fiscal. Of … Read more
The key is for the Centre to accept that states are at the frontline of this economic battle, and urgently need access to additional resources, not just compensation for inadequate cess collections. Synopsis Markets would see immediately that the risk of default of state governments, with such a large rise in their liabilities, would be … Read more
The Centre formally proposed two options for borrowings to meet the shortfall in goods and service tax (GST) compensation for FY 2020-21 to states, giving them seven working days to revert with their choice. State finance secretaries will meet Union finance secretary and expenditure secretary on September 1, 2020 for clarifying issues. States can individually … Read more