GS III: ECONOMY – GST
Kerala FM chairs meet of States on Centre’s GST dues
Opposition-ruled States have decided to take a united stance to secure the eligible Goods and Service Tax (GST) compensation from the Centre.
A meeting chaired by Kerala Finance MinisterM. Thomas Issac and attended by the Finance Ministers of Punjab, Delhi, Chattisgarh, West Bengal and Telangana decided to reject the two options for Goods and Service Tax (GST) compensation mooted by the Centre in the GST Council meeting on August 27, 2020.
Dismissing Union Finance Minister Nirmala Sitharaman’s theory of an unforeseen “act of God”, the Finance Ministers’ meeting noted that the States are eligible for GST compensation, and a 14% increase annually in the GST from the base year has been assured.
The first option was a special window to the States, in consultation with the Reserve Bank of India, for borrowing ₹97,000 crore at a reasonable interest rate.
The second option was to borrow the entire ₹35 lakh crore shortfall under the special window.
The GST Act is clear that the compensation was to be met in full if the growth rate of States was below the threshold level of 14%.
🍁🍁🍁🍁🍁🍁🍁🍁🍁🍁
Join >> @IAS4India
Join >> @SSC4Exams
Join >> @Banking4Exams
Join >> @CSE_CurrentAffairs
Join >> @TheHindu_Zone_Official
🍁🍁🍁🍁🍁🍁🍁🍁🍁🍁
For paid promotion
Contact @IAS4India_bot
Kerala FM chairs meet of States on Centre’s GST dues
Opposition-ruled States have decided to take a united stance to secure the eligible Goods and Service Tax (GST) compensation from the Centre.
A meeting chaired by Kerala Finance MinisterM. Thomas Issac and attended by the Finance Ministers of Punjab, Delhi, Chattisgarh, West Bengal and Telangana decided to reject the two options for Goods and Service Tax (GST) compensation mooted by the Centre in the GST Council meeting on August 27, 2020.
Dismissing Union Finance Minister Nirmala Sitharaman’s theory of an unforeseen “act of God”, the Finance Ministers’ meeting noted that the States are eligible for GST compensation, and a 14% increase annually in the GST from the base year has been assured.
The first option was a special window to the States, in consultation with the Reserve Bank of India, for borrowing ₹97,000 crore at a reasonable interest rate.
The second option was to borrow the entire ₹35 lakh crore shortfall under the special window.
The GST Act is clear that the compensation was to be met in full if the growth rate of States was below the threshold level of 14%.
🍁🍁🍁🍁🍁🍁🍁🍁🍁🍁
Join >> @IAS4India
Join >> @SSC4Exams
Join >> @Banking4Exams
Join >> @CSE_CurrentAffairs
Join >> @TheHindu_Zone_Official
🍁🍁🍁🍁🍁🍁🍁🍁🍁🍁
For paid promotion
Contact @IAS4India_bot