GST Council fails to reach consensus on compensation to states; next meeting on 12 October

Finance minister Nirmala Sitharaman said the panel decided to extend the use of GST cess collections for compensating states beyond the previously agreed June 2022 timeframe

Press Trust of India October 05, 2020 21:41:12 IST
GST Council fails to reach consensus on compensation to states; next meeting on 12 October

Finance Minister Nirmala Sitharaman after the 42nd meeting of the GST Council. ANI

New Delhi:  A crucial meeting of the GST Council on Monday failed to reach a consensus on ways to compensate states as the panel was split on political lines over using borrowing as a tool.

Briefing reporters after a marathon meeting of the panel, Finance Minister Nirmala Sitharaman said 21 states had opted for one of the two options the Centre had previously suggested for borrowing to meet the shortfall in GST collections.

But some states did not opt for either of the two options, and the Council decided to go for more deliberations, she said, adding the panel will meet again on 12 October.

She said the panel decided to extend using GST cess collections to compensate states beyond the previously agreed June 2022 timeframe.

The panel, besides easing the compliance burden of small taxpayers, also exempted satellite launch services by ISRO and Antrix, Finance Secretary Ajay Bhushan Pandey said.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

SSLV Test Flight: ISRO to attempt launch of its new rocket-in-development by Dec 2020
science

SSLV Test Flight: ISRO to attempt launch of its new rocket-in-development by Dec 2020

SSLV will fly on two test launches from ISRO's Second Launch Pad in Sriharikota, one of which could be in December 2020.

ISRO Recruitment 2020: Apply for 55 vacancies including post of scientist, engineer by 15 Oct; details at sac.gov.in
India

ISRO Recruitment 2020: Apply for 55 vacancies including post of scientist, engineer by 15 Oct; details at sac.gov.in

As per reports, the recruitment advertisement was first released on 14 March. But the process had to be delayed due to the pandemic

Stalemate over GST compensation for states continues as Council fails to reach consensus today
India

Stalemate over GST compensation for states continues as Council fails to reach consensus today

Finance Minister Nirmala Sitharaman, who heads the Council, said the Centre can't borrow and pay states for the shortfall as it will lead to rise in bond yields