INSUBCONTINENT EXCLUSIVE:
States have actually sought extension of GST compensation scheme for another 5 yearsNew Delhi: Numerous states have actually looked for
extension of the GST compentation cess routine for another 5 years and also advised that the share of main federal government should be
raised in centrally-sponsored plans, as their earnings have actually been badly struck by the Coronavirus pandemic.In addition to this, a
number of states also flagged greater tax rate on textile products from January 1 and demanded that the rate trek be put on hold.The matter
was raised by states like Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu, who said that they are not in favour of a walking in Goods
and Services Tax (GST) rate on fabrics to 12 percent, from 5 per cent presently, with result from January 1, 2022
Both the problems showed up for discussion throughout financing minister Nirmala Sitharaman's pre-budget consultations with her equivalents
from the states.Incidentally the meeting of the GST council will take place on December 31, i.e
tomorrow.The GST payment to states for income shortage arising from subsuming of local taxes such as VAT in the uniform national tax Goods
and Services Tax (GST) will end in June next year.There has been a loss of income to the states due to the GST tax system, the Centre has
not made arrangements to compensate the loss of earnings of about Rs 5,000 crore to the state in the coming year, so the GST compensation
grant must be continued for the next 5 years after June 2022, Chhattisgarh chief minister Bhupesh Baghel said
Lots of states have actually requested this
We have likewise asked to extend GST payment
If it is not extended, the finances of lots of states will be in a bad shape, Delhi deputy chief minister Manish Sisodia said after the
conference with Ms Sitharaman.Pointing out that Chhattisgarh has actually received less share of main taxes by Rs 13,089 crore in the Union
Spending plan of the last three years, Mr Baghel required the share of central taxes should be provided to the state entirely in the coming
year.He also required that Rs 4,140 crore transferred with the Centre at the rate of Rs 294 per tonne on coal mining from coal block
business need to be moved to Chhattisgarh soon.Rajasthan education minister Subhash Garg said extension of payment cess window till 2026-27
is a valid need of states and the Centre need to think about it.He also demanded reduction in import duty on gold and silver from 10 percent
Our most considerable demand is that the Centre's share in centrally-sponsored scheme has actually slowly reduced and states share has
Earlier share would be 90-10 and now it is 50-50 or 60-40, our request is that it must go back to 90-10, Mr Garg said.West Bengal also
pitched for extension of GST compensation for another 5 years citing two years of difficult time due to Coronavirus pandemic.Coronavirus
crisis was not expected when this was fixed, stated West Bengal city advancement - & municipal affairs minister Chandrima Bhattacharya
She likewise stated that states have actually likewise asked for raising the Union federal government's share in the Centre-sponsored
schemes.With regarding to state loaning, she stated that extra borrowing window must lack any restriction.Tamil Nadu financing minister P
Thiaga Rajan stated he has actually required extension of GST settlement cess program for at least two years due to the fact that of the
pandemic.He also made a case for raising share of the Centre in centrally-sponsored schemes
On the greater GST rate on fabric items, Mr Sisodia stated the move to raise GST on fabrics from 5 percent to 12 percent is not individuals
friendly and this ought to be withdrawn
If a common man purchase clothing of Rs 1,000, he has to pay GST of Rs 120
Delhi is not in favour of this, he said.Mr Sisodia is likewise Delhi's finance minister.Mr Thiaga Rajan said, It is one point agenda (for
It is a program that lots of states have actually raised
In the agenda product it states that it was raised by Gujarat but I understand that many states raised it
It should be stalled (move to raise GST rate on textile) .
