newsdog Facebook

GST Council meeting will be discussed regarding the Attorney General's opinion on compensation: Sitharaman

The India Print 2020-08-01 22:50:34

New Delhi. Finance Minister Nirmala Sitharaman has said that it was only after consultations with the states that the views of the Attorney General (AG) on the Goods and Services Tax ( GST ) compensation were sought. He said that this legal opinion would be discussed in the GST Council meeting. Some states have objected to the Attorney General's opinion on GST compensation. When asked about this, Sitharaman said on Saturday that it will be discussed in the GST Council meeting. "The issue was discussed in the last meeting of the GST Council," the Finance Minister told reporters here. Members had given their views in this matter. After that it was considered to get a legal opinion from the Attorney General. ''

The GST Council, headed by the Union Finance Minister, in March decided to seek the opinion of the Attorney General, the Chief Legal Officer of the government, on the legality of the council taking loans from the market. Was. There is talk of raising debt from the market to compensate for the lack of funds for compensation. The council also includes finance ministers of the states. Sitharaman said that the Attorney General's opinion has been received. "We will hold a meeting of the GST Council only on the issue of compensation." He said that the date of the meeting would be decided soon. Sources said that the Attorney General is of the opinion that the central government is not obliged to pay the shortfall of GST compensation money payable to the states. The GST Council has to find a way to make up for the shortfall in the compensation fund. August, The payment of GST compensation to the states remains a issue after the revenue from cess has been reduced since 2019. The Center had to spend on surplus cess collected in 2017-18 and 2018-19 on compensation. 

Under the GST Act, States are compensated for the first five years of revenue loss on a bimonthly basis after the implementation of GST from July 1, 2017. The reduction of revenue loss is calculated based on an estimate of 14 per cent annual growth in GST collections for 2015-16 as base year. The four slabs of tax under the GST framework are five percent, 12 percent, 18 percent and 28 percent. The highest tax slab attracts cess on luxury or detrimental items. This cess is used to compensate states for revenue losses. The Center had released GST compensation of Rs 1.65 lakh crore in 2019-20. However, the amount raised from the cess in 2019-20 was less i.e. Rs 95,444 crore. Compensation payments were Rs 69,275 crore in 2018-19 and Rs 41,146 crore in 2017-18.