The centre is willing to alliance with the states who have not chosen offered to fill the gap in GST the finance ministry states that the centre allows 20 states for borrowing ₹68,825 crores from the market to fill the financial shortage but some states show that they will go to the supreme court a self-sufficient conflict resolution mechanism.
The ministry added that 9 states bring GST official; it cannot stop 22 other states from taking from the market upon their future compensation cess dues.
“Only five months are left [in the financial year], but none of them has crossed even the 3% [of gross state domestic product (GSDP)
The biggest tax reform i.e. Goods and Services Tax is now a part of Indian Economy. A new and unified tax structure is followed for indirect taxation] limit despite the fact that they can borrow up to 5% of their [GSDP]. Their borrowing is fully protected as both principal and interests are repaid through compensation cess that will continue till their debt obligations are fully met.” “The FM [Nirmala Sitharaman] is also willing to discuss the matter, which is the best way as a legal option is not always prudent.”
The biggest tax reform i.e. Goods and Services Tax is now a part of Indian Economy. A new and unified tax structure is followed for indirect taxation“What it (the Centre) is doing is nothing but betrayal. If payment of compensation is delayed further we will take legal recourse after talking to other states.” “for the first time, the Centre has taken a unilateral decision without considering the views of states”. “We lodged our serious protest with finance minister Nirmala Sitaraman,” Rao said. “Whether we should take to legal recourse or there is any other option to get more funds from the Centre would be decided after the high-level meeting with the chief minister.”
“We are close to causing irreparable damage to the One-Nation-One-Tax
Why is the GST far away from its agenda as One Nation, One Tax? We flashed out this topic deeply and try to showcase innovative ways for easy understanding“It’s clear that the Centre now wants to focus on option 1 only and nudge the remaining States to take a view in the matter. One would hope that the GST council will resolve the issue with consensus over the next few days, though the possibility of this going to court cannot be ruled out.” Sunil Kumar, DGM at tax consultancy firm Taxmann, said: “As consensus has not been achieved on the issue, the go-ahead given to 20 States to borrow money under option 1 may impact persuasively on the future functioning of the GST Council meeting
Get to know about GST (Goods and Services Tax) council 1st to 42th meeting updates and decisions taken by members. We have covered 1st meeting to last meeting decisions
