In the case of GST compensation, the matter between the states and the central government has still not been resolved. After opposition from several states, the decision on this has been deferred till next week. It has also been decided in the GST Council meeting on Monday that from January 1 next year, refunds will be given only in those bank accounts which will be linked to PAN and Aadhaar.
In view of the aggressive attitude of many states regarding GST Compensation, a decision has been taken to discuss it further. Finance Minister Nirmala Sitharaman told the press conference that though 21 states were ready for the first option out of the two options given by the central government, but no state can be left alone. More time is needed to listen to everyone’s thoughts. He said some states still want the Center to borrow for them. However, amid growing discussion in the matter, Bihar Finance Minister Sushil Modi suggested that the states should be given more time to think, on which the states have been given 8 days. It will be discussed again on October 12. According to the finance minister, 21 states agreed to the central government’s first option of borrowing from the RBI, in which it is proposed to extend its payment compensation period by more than five years. The rest of the states said in the GST Council meeting that its decision cannot be taken only by agreeing 21 states. The central government has now also changed the amount of borrowings in the first option. In the new proposal, now 1.10 lakh crore rupees will be borrowed from the Reserve Bank against the earlier 97 thousand crores for the states.
Stop fake forgery
Troubled by fake refunds of GST, the government has now announced a new system for this. Revenue Secretary Ajay Bhushan Pandey has said that now only those bank accounts will be given GST refund which will be linked to PAN and Aadhaar.
Relief to small taxpayers
GST Council has been decided to give exemption in filing returns giving relief to small traders. From January 1 next year, traders with a turnover of less than Rs 5 crore will not need to file returns every month. They will not have to file returns every quarter, though tax will have to be paid every month through challan.
20,000 crores will be distributed among the states:
Finance Minister Nirmala Sitharaman said that Rs 20,000 crore received from the compensation cess will be distributed among the states. The GST Council also decided to exempt the satellite launch services of ISRO and Antrix from the Goods and Services Tax Scope. Finance Minister Sitharaman said after the meeting, Rs 20,000 crore from compensation cess will be disbursed among the states. He also said that the GST Council has decided to continue the compensation cess even after June 2022. After the council meeting, Finance Secretary Ajay Bhushan Pandey said that the GST Council has decided to exempt satellite launch services of ISRO and Antrix from the Goods and Services Tax Scope.
Finance Minister Nirmala Sitharaman announced, 20 thousand crore rupees will be released to the states tonight