Singhdev joins video conference in GST Council meeting, GST compensation continues even after 5 years of GST implementation.
Raipur. 27 August 2020. Commercial Tax Minister Shri T.S. Singhdev, in the 41st meeting of the GST Council, today demanded immediate release of the amount of GST compensation by the Government of India. He urged the Central Government to continue GST compensation to the states even after the completion of five years of GST implementation. Shri Singhdev attended the GST Council meeting chaired by the Union Finance Minister Smt Nirmala Sitharaman through video conference. He was accompanied by Dr. Maninder Kaur Dwivedi, Principal Secretary, Commercial Tax (GST) Department and Commissioner Mrs. Ranu Sahu also attended the meeting.
In the meeting of GST Council, Commercial Tax Minister Mr. Singhdev said that in view of the current economic circumstances caused by the global pandemic Kovid-19, the Government of India should immediately release the amount of GST compensation. If the central government is financially inefficient in this and it is necessary to take a loan, then the Government of India should take responsibility for it by taking loans themselves. Its burden should not be passed on to the states. It is noteworthy that not a single installment of GST compensation has been released to Chhattisgarh for the current financial year 2020-21.
In the GST Council meeting, the Union Finance Ministry said that due to corona, states are facing difficulty in GST compensation. For this, the central government is considering two options. The Government of India can provide GST compensation to the states by taking loans from the Reserve Bank or the state governments can raise financial resources by taking loans themselves. The final decision will be taken by the Government of India based on the suggestions given by the states on these two options.
Mr. Singhdev in the meeting demanded that the Central Government continue to give GST compensation to the states even after five years of implementation of GST. He said that at the time of implementation of GST in the country, the states had left their right to collect taxes on the condition of compensation only. It should not be closed or curtailed by the central government. Working in accordance with the GST Compensation Act and the 101st Constitutional Amendment Act is the primary responsibility and fundamental responsibility of the Central Government. Believing this, most states had agreed on GST. After the GST is implemented, the loss in the tax collection of the states should be compensated by the Government of India.
In the meeting, Mr. Singhdev said that if GST collection is reduced this time, it is the responsibility of the Central Government to provide the amount of GST compensation to the states by taking loans. Do not force the states to take loans by not releasing it. It is noteworthy that in this meeting of the GST Council, the Central Government had sought suggestions from the States on the problems faced by the spread of the Corona infection and the nationwide lock-down to compensate for GST due to the economy. Commercial tax minister Mr. Singhdev put Chhattisgarh’s favor and priorities in the meeting.
