GST Council Consensus Over Compensation Still Active

In the monsoon session of parliament, the GST administration was divided from politics, after the opponent ruled the state governments turned down the option of borrowing chosen by the central government at the cabinet meeting last month.

The suggestion has been rejected by the opposition ruled states who try to fulfil temporarily through borrowing, however, plans distributed to states recommend that simply the principal will be refunded back by means of revenue from GST cess and states will hold to give the interest.

As the government is deprived financially the most state government and BJP must be engaged under the National democratic alliance.

“It is true that most state governments are facing financial crunch but the GST Council Get to know about GST (Goods and Services Tax) council 1st to 41st meeting updates and decisions taken by members. We have covered 1st meeting to last meeting decisions. Read more is not the place to make it a political contest. The Council is all about consensus and party politics should not be introduced in the Council. When the lockdown happened in April this year, the revenue loss for Bihar in comparison to last year was 81.6%, while it was 42.1% in May last year. However, some economic activity started in June and the loss of revenue was 15.12% in comparison to last year, and it was 8.34% in July. So, all states are facing financial issues”.

The centre has decided and said that they will provide compensation to states such as Delhi, Punjab, Kerala, West Bengal and Chhattisgarh.

“It will be difficult to gain consensus. The GST Council will get degenerated if you take it to majoritarianism because its basic spirit is consensus. The Council was formed on the understanding that every state would have equal rights to safeguard the federal structure. Taxes were subsumed to ensure this. You gave the same voting rights to all states irrespective of population size”.

An agreement at the following GST official will lay upon where by far the states push the case and the indeed to which the Centre is ready to revive the suggestions to improve the GST conditions for the state. “The right of states to tax is gone. States such as Chhattisgarh are losing out despite contributing to the national kitty and now we are told to take loans. Today if they are taking a decision like this, tomorrow it could be on anything on the basis of majority. So what is the point of the GST Council? Irrespective of political parties, the focus must be only on upholding constitutional guarantee”.

The official has asked how the recovery of GST will take place in the states, a responsibility of the central government beneath the Constitution and the GST (Compensation to States) Act.

There is the difference occurred in the opinions of the centre and state government for finding the source due to the decline in the revenues.