Home Tech GST Council Meet Approves Extension of Compensation Cess Beyond 2022, Say Sources

GST Council Meet Approves Extension of Compensation Cess Beyond 2022, Say Sources

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GST Council Meet Approves Extension of Compensation Cess Beyond 2022, Say Sources

Sources say that some more options may be discussed by both Centre and states to arrive at a consensus.

Sources say that some extra choices could also be mentioned by each Centre and states to reach at a consensus.

The GST Council may also take up a proposal to increase the GST compensation cess by two years to 2024 and arrange a committee to have a look at the adjustments wanted.

  • Information18.com
  • Final Up to date: October 5, 2020, 3:06 PM IST
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In line with high officers within the finance ministry, the 42nd Items and Providers Tax (GST) Council assembly headed by Finance Minister Nirmala Sitharaman has authorised the extension of the GST compensation cess levy past 2022.

Sources stated that levy can be reviewed and determined on occasion. The proposal was to increase the levy by two years till 2024.

The rift between BJP-ruled and opposition-led states could widen with the previous set to hunt quicker disbursement of funds by way of the particular borrowing window proposed by the Centre, having opted for borrowing Rs 97,000 crore.

However opposition-led states will demand that Centre borrows and offers to states, versus states borrowing since it’s the statutory obligation of the federal government to make up for income losses to states.

The GST Council may also take up a proposal to increase the GST compensation cess by two years to 2024 and arrange a committee to have a look at the adjustments wanted.

On the GST Council assembly on August 27, the Centre proposed that the states might borrow Rs 97,000 crore, equal to the income loss because of the GST transition, or Rs 2.35 lakh crore, equal to the income loss because of the GST transition and Covid-19 pandemic.

About 20 states have opted for the primary borrowing choice, however others have rejected each, which can immediate voting on the matter. States can also look for a dispute decision mechanism.

GST Council has labored on consensus amongst all stakeholders since inception, apart from one assembly the place voting occurred in December final yr on the difficulty of state-level lotteries.

Sources say that some extra choices could also be mentioned by each Centre and states to reach at a consensus.

The GST Council may also take up procedural points aimed toward simplification apart from fee rationalisation on non-alcohol-based sanitizers.

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