GST Council Meeting Will Be Held On Monday

GST Council meeting will be held on Monday, there may be an uproar on the issue of the compensation amount. The GST Council meeting to be held on Monday is going to be very ruckus.

In the meeting, a final decision is to be taken on both the issues proposed by the Central Government regarding GST compensation.

The situation so far is that except for Odisha and Puducherry, both other proposals of the Center on GST compensation have not been accepted by all other non-BJP states.

On the other hand, approval has been shown to accept the first proposal from 21 states.

In such a situation, the central government can force all other states to accept it on the basis of the proposal approved by these states.

Non-BJP states like Maharashtra, West Bengal, Kerala, Rajasthan, Punjab, Jharkhand, Delhi, Tamil Nadu, Telangana have already said that they do not accept taking any loan at their level for compensation.

Sources say that in the upcoming meeting by the central government, it will be clearly told to all the states that those who do not accept the proposal issued in the last meeting on GST compensation will have to be prepared to bear a huge financial loss.

According to the GST Act, if 20 states accept the proposal issued by the council, then the other states will have to accept it. So far 21 states have accepted it.

In a way, the states that have not yet agreed to the proposal will have no option but to accept it. According to this proposal, a total loan of 97 thousand crore rupees will have to be taken by all states.

The central government will make this loan available through the RBI. It will also be arranged that this loan will be repaid by charging a long-term compensation tax on behalf of the states so that there is no problem in paying its interest.

In the agenda prepared for this meeting by the Finance Ministry, it has been said that only Rs 15,000 crore is owed as GST compensation.

It said that since GST has been implemented i.e. from July 2017 to date, Rs 2,81,373 crore has been recovered as GST compensation tax while Rs 2,96,465 crore has been paid. Now the states owe only Rs 15,092 crore on this head.

The GST Council meeting held on 27 August 2020 was also a much uproar issue. It was then said that Rs 2.35 lakh crore is to be paid to the states as compensation.

The government says that only a collection of less than Rs 97 thousand crores has been due to the economic recession. The remaining reduction is due to COVID and the government is not responsible for the revenue loss due to the epidemic.

The center was given two options. The first option involves taking loans from the RBI with the help of the Finance Ministry, while the second option involved taking loans from the market.

Whereas the non-BJP states say that GST compensation is entirely the responsibility of the Center and it should take the entire loan and give it to the states.