STATES IN LOSS OF GST !

ALL THE STATES OF INDIA ARE IN HUGE LOSS OF GOODS AND SERVICES TAX , COMPLAINING THAT THE CENTRE IS N’T GIVING THEM GRANTS OF THEIR SHARE OF GOODS AND SERVICES TAX. IT IS ALSO SPOTTED THE GST RECEIVED BY THE GOVERNMENT IS SMALL IN NUMBER , COMPARING TO THE CASH RECEIVED FROM GST LAST YEAR , THAT IS , IN 2019 . IN THE FIRST QUARTER OF THIS YEAR , WE HAVE SEEN A RAPID INCREASE IN INCOME TAX PAYMENT BY THE PEOPLE , WHICH IS BENIFICIAL FOR THE INVESTMENT IN EXPENDITURES .

BUT , AGAIN , THERE IS SHARP DECLINE IN TAX PAYMENT , WHICH IS PUTTING PRESSURE ON ALL THE STATE AND THE CENTRAL GOVERNMENT FOR THE GRANTS .

THE DELAY PAYMENTS OF GOODS AND SERVICES TAX ARE WITNESSED , GOVERNMENT HAS DECIDED IT TO BE CHARGED ON NET TAX LIABILITY WHICH WILL BE INITIATED FROM SEPTEMBER 1 . RS 64000 CRORES CAN BE RECOVERED FROM THE UNPAID INTRESTS . EARLIER , THE INTEREST WAS CHARGED ON GROSS TAX LIABILITY, BUT , FROM SEPTEMBER 1 , IT WILL BE CHARGED ON NET TAX LIABILITY .

CENTRE IS NOT ABLE TO GIVE THE GRANTS TO THE STATES , ALL THE STATES ARE DEMANDING THEIR SHARE OF GST FOR THE PAYMENT OF THE SALARIES OF THE LABOURS , CONDUCTORS , DRIVERS OF DTC BUSES , DOCTORS , ENGINEERS AND TEACHERS .

CENTRE HAS MADE THE DECISION TO BORROW FROM RESERVE BANK OF INDIA TO BRIDGE THE GAP OF GOODS AND SERVICES TAX . OUR FINANCIAL MINISTER NIRMALA SITHARAMAN , SAID THAT THE STATES ARE LIKELY TO FACE RS 3LAKH CRORES GST REVENUE GAP WITH THE CONTRACTION IN THE ECONOMY DUE TO COVID-19 . OUT OF RS 2.35 LAKH CRORES , 97000 CRORES DUE TO THE GST IMPLEMENTATION .

OUR FINANCE MINISTER HAS GIVEN TWO CHOICES TO THE STATES :

  • A SPECIAL WINDOW WILL BE PROVIDED TO THE STATES BY RESERVE BANK OF INDIA CONSULTATION , STATES CAN GET THIS RS 97000 CRORES AT THE REASONABLE RATE WHICH CAN BE REPAID BY THE STATES TO RBI AFTER FIVE YEARS THROUGH THE COLLECTION OF CESS.
  • THE ARRANGMENTS FOR THE STATES CAN BE MADE FOR THEIR BORROWINGS FROM RESERVE BANK OF INDIA ALONG WITH FACILITIES PROVIDED.

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