Revenue shortfall: Hold GST Council meet soon, Mitra to Sitharaman

While Mitra expressed concern about an increase in the GST payout cess deficit, GST receipts in April hit a new high of over Rs 1.41 lakh crore.
West Bengal Finance Minister Amit Mitra has urged Union Finance Minister Nirmala Sitharaman to convene an emergency meeting of the GST Council to address the expected increase in states’ GST compensation needs as a result of the savage second Covid wave.

Revenue shortfall: Hold GST Council meet soon, Mitra to Sitharaman

“According to the Gol forecast, the shortfall in 2021-22 was projected to be Rs 1,56,164 crore, without taking into account the effect of Covid Wave-2. Because of Covid Wave-2 and lockdowns, the payout will now be even higher than anticipated. Mitra wrote to Sitharaman, “This is undeniably distressing.” In FY21, the Centre borrowed Rs 1.1 lakh crore and distributed the money to the states to make up for the GST reimbursement cess shortfall.

While Mitra expressed concern about the growing shortage, GST receipts hit a new high of over Rs 1.41 lakh crore in April. GST receipts in April 2021 were 14% higher than those in March, at Rs 1.23 lakh crore.

The GST Council held its most recent meeting in October 2020. “Permit me to draw your attention to paragraph 6 of the ‘Procedure and Conduct of Business Regulations of the Goods and Services Taxes Council,’ which states that the ‘Council shall meet at least once in each quarter of the financial year.’ You must accept that not meeting every quarter to address important topics runs counter to the mutual federalism principle.”

While Mitra expressed concern about an increase in the GST payout cess deficit, GST receipts in April hit a new high of over Rs 1.41 lakh crore. GST receipts in April 2021 were 14% higher than those in March, at Rs 1.23 lakh crore.

“GST sales have not only passed the Rs 1-lakh-crore threshold for the past seven months in a row, but have also increased steadily. There are also strong signs of a long-term economic rebound at this period. The finance ministry said that “closer tracking of false billing, deep data mining using data from several sources, including GST, income-tax, and customs IT systems, and successful tax administration have all led to the steady rise in tax revenue.”

“Despite the second wave of the Covid-19 pandemic impacting various parts of the world, Indian companies have once again shown remarkable resilience by not only complying with the return filing criteria but also paying their GST dues on time during the month,” the ministry stated.Revenue shortfall: Hold GST Council meet soon, Mitra to Sitharaman

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