FM to hold GST Council meeting on GST compensation

by amolwarankar
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New Delhi: There has been a dispute over GST compensation between States and Center. A GST Council meeting will be held on thursday to discuss GST Compensation. Under the GST Act, states have been guaranteed compensation from July 1, 2017, in the first five years of the implementation of GST. However, under the current revenue sharing formula, the central government was not able to share the GST of the states.

According to CNBC-TV18, some States are likely to discuss the proposal to increase the cess on Sin Goods in the GST Council meeting. States like Punjab, Chhattisgarh, Bihar, Goa, Delhi are among those who suggest increasing the cess on sin goods. If this happens, cigarettes, pan masala will become expensive.The current GST rate structure, cess is also imposed on some sin goods, including cigarettes, pan masala and aerated drinks. Apart from that luxury products like cars also comes in this list.

The total GST collection in July 2020 was Rs 87,422 crore whereas in June it was Rs 90,917 crore. The GST collection of Rs 87,422 crore in July includes Rs 16,147 crore as Central GST (CGST), Rs 21,418 crore as State GST (SGST) and Rs 42,592 crore as IGST. The Ministry of Finance said, ‘out of IGST, Rs 20,324 crore has been received through import of goods and Rs 7,265 crore through cess’.

Last month, the Finance Ministry said that the Central Government has released the last installment of Rs 13,806 crore for GST compensation for the financial year 2019-20.

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