GST Council Meeting Will Be Held For Issue Of Compensation

GST Council meeting will be held today, the agenda will be to find a way forward on the issue of compensation. The GST Council is going to meet once again on Monday on the issue of compensation for the states.

According to the information given by the sources, in this meeting, the suggestion of non-BJP ruled states to set up a ministerial committee to form a consensus on the compensation amount can be considered.

In this way, the council of state finance ministers headed by Union Finance Minister Nirmala Sitharaman is going to discuss for the third consecutive time to compensate for the reduction in GST revenue.

Non-BJP ruled states suggest that a ministerial committee be formed to form a consensus on the issue of compensation money.

However, the BJP-ruled states have already agreed with the Center on the option of taking loans and they say that they should now be allowed to move towards taking loans so that they can get the funds available soon.

According to sources, the unilateral agenda of the 43rd meeting of the GST Council to be held on Monday will be to find a way forward on the issue of compensation.

Earlier, the 42nd meeting of the GST Council was held last week. It was decided in this meeting that cess will be levied on luxury or harmful products like cars, tobacco, etc. even after June 2022. There was no consensus on the issue of compensation in this meeting of the GST Council.

Let me tell you here that in the current financial year, GST compensation revenue is expected to decrease by Rs 2.35 lakh crore. On the issue of the compensation amount, the Center has given two options to the states in August.

In the first option, a special facility is to be provided by the Reserve Bank of India for a loan of Rs 97 thousand crores. At the same time, the second option is to raise the entire Rs 2.35 lakh crore from the market.

The loss of the country’s economy from the COVID epidemic is reflected in the data released by the RBI last week. The report presents the status of 54 different sectors important for the health of the economy in the period February-September this year.

According to this, only 20 out of 54 sectors whose activities (growth rate of sales or production) have reached or exceeded pre-COVID i.e. February 2020 level.

Demand for power, sales of two-wheelers, steel consumption has become like before the business situation in the area. During this time, the situation in the financial sector has become increasingly normal.