41 GST Council Meeting: GST collections drop drastically in current fiscal
Corona epidemic impact on GST collection – States are not getting money – GST collection of 2.35 lakh crore shortfall – Government will consider other options to give money to states – Two-wheeler industry got nothing. From the common man to the industry, the GST was hopeful from the 41st meeting of GST GST, the government did not give relief to the two-wheeler industry while two-wheeler manufacturing industry demanded that the GST rate in this sector was reduced from 28 percent to 18 Bring it up to a percentage, but it did not happen and the government continued to resolve its problems.
In the meeting, no decision made regarding tax cuts on two-wheelers. This has shocked the common man looking for relief. After the meeting, Finance Minister Nirmala Sitharaman said that no timeline regarding tax deduction on two-wheelers. Now it is being hoped that this can be considered in to next meeting of the council. The next meeting of the GST Council will held in September.
States asked for a weekIn this meeting, the compensation given to the states was discussed. Finance Secretary Ajay Bhushan Pandey told that two options of compensation have been discussed to the states. States have sought 1 week to consider both these options. Finance Secretary informed that this arrangement of compensation will be for the financial year 2021 only. The Finance Secretary hoped to collect 65 thousand crore compensation cess in the financial year 2021.
Center has two options for states
The first option is to pay by borrowing the center.
Another option is to borrow from the state RBI itself.
2.35 lakh crore GST shortfall in the current year 2021
The Finance Secretary informed us the GST shortfall of 2.35 lakh crore can be expected in FY 2021. While the shortfall of the remaining amount will be due to Corona Mahamari. Finance Secretary said that GST collection has badly affected due to the Corona epidemic. According to the Finance Secretary, the Attorney General has opined that shortfall of GST collection cannot be met from the Consolidated Fund of India.
No discussion on raising GST rate: Finance Secretary
Finance Secretary said that there was no discussion about the increase in GST rates in the council meeting. The Finance Secretary has expected a compensation collection of Rs 3 lakh crore in the current financial year. The Finance Secretary said that there is an outstanding of 1.5 lakh crore rupees from April to July for GST compensation of states. Indicating the coronavirus epidemic, Finance Minister Nirmala Sitharaman said that the economy will decline due to the divine event in the current financial year.
There is no discussion on bringing petroleum products into GST, the impact will continue on the common man
It was expected that the GST Council could set a time limit for bringing petroleum product under the purview of GST, but it did not happen, the impact of the Corona epidemic can be seen clearly on the Council’s discussion and their decisions that only GST the problem that is facing the collection is being given full attention, it is possible that after improving the situation, the GST Council should take a decision on all these subjects during the next meeting.