Finance

GST compensation cess – will it turn out to be a everlasting function?

Realising that the compensation cess on GST assortment is unlikely to develop @14% y-o-y after June 2022, some states have expressed a want to proceed with the GST Compensation Cess for additional interval.

By Sachin Menon

With a view to ushering within the mom of all financial reforms in India, that’s Items and Providers Tax, the then finance minister Arun Jaitley, had agreed to what sure sections of the society could view as an unreasonable demand from the states. A promise was made to compensate lack of income resulting from introduction of GST that could be suffered by the states,

Demand Seen: Mortgage assure scheme to remain via FY22

In Could, the finance ministry prolonged the validity of the ECLGS by three months via September 30 or till ensures for the sooner restrict of Rs 3 lakh crore have been issued. Now, it’s anticipated to be prolonged additional. (Consultant picture)

The federal government will possible lengthen the validity of its Rs 4.5-lakh-crore assured mortgage scheme for corporations and people by six months via March 2022 to allow a wider pool of companies to make the most of it, sources instructed FE.

“There’s additionally an opportunity that originally, it could be prolonged by three months via December 2021, which could

E-way GST invoice era picks up tempo forward of festive season

The day by day common for the primary 19 days of September was 21.24 lakh, virtually at par with the day by day common (21.26 lakh) for August.

Every day e-way invoice era for items transportation beneath the Items and Companies Tax (GST) system got here in at 22.71 lakh for the week ended September 19, up 10.4% over the day by day common for the earlier week, reflecting a pick-up in financial exercise forward of the pageant season.

The day by day common for the primary 19 days of September was 21.24 lakh, virtually at par with the day

Cautious Push: Finance secretary TV Somanathan tempers stimulus expectations

The Centre’s capex rose solely 15% within the April-July interval from a 12 months earlier than, towards the full-year goal of 30% (from the actuals of FY21).

The Centre’s expenditure commitments have exceeded the budgeted degree by about Rs 2 lakh crore solely half means via the fiscal, owing to the announcement of a raft of steps, together with free grains to the poor, elevated fertiliser subsidy and clearance of dues to exporters, finance secretary TV Somanathan has mentioned.

The Centre had budgeted its FY22 expenditure at Rs 34.83 lakh crore.

Nonetheless, tax collections – each direct and oblique –

Rs 31,000-crore assist for dangerous financial institution: Finance minister Nirmala Sitharaman

Some analysts have, nevertheless, raised the difficulty of ethical hazard in such ensures, arguing that it quantities to the federal government bailing out lenders for his or her failure in due diligence and, in some circumstances, complicity with unscrupulous components.

Finance minister Nirmala Sitharaman on Thursday stated the federal government will provide assure to the tune of Rs 30,600 crore on the safety receipts (SRs) issued by the Nationwide Asset Reconstruction Firm (NARCL), or the so-called dangerous financial institution, whereas buying non-performing belongings from lenders.

Whereas this quantity will mirror within the authorities’s contingent legal responsibility, the precise fiscal outgo

Govt reluctant to increase GST support to states past June 2022

GST compensation transferred to states throughout FY21 (amounting to over Rs 2 lakh crore) by way of the cess and the back-to-back mortgage routes was over 9% of their complete state income receipts (tax and non-tax) within the 12 months.

State governments on Friday appeared arising towards a fiscal cliff in FY23, because the Centre made it clear it may well’t prolong the GST income compensation mechanism for them past the 5 years by way of June 2022.

This leaves the states with no possibility apart from to depend on a close to complete revision of the products and providers

GST Council LIVE: No cheer on petrol and diesel entrance; Swiggy, Zomato-like providers to return below GST

The assembly was the the primary in-person assembly between the Union Finance Minister and State Finance Ministers in two years.

GST Council Assembly LIVE: Finance Minister Nirmala Sitharaman right this moment chaired the forty fifth assembly of the Items and Service Tax Council Council in Lucknow right this moment the place it was determined towards bringing petrol and diesel below the ambit of GST. Within the first in-person assembly of the GST Council, it was determined to increase GST exemption for varied life saving covid-19 medication. Additional, the GST Council determined to exempt varied different non-covid life-saving medication from GST.

Nirmala Sitharaman LIVE: Dangerous Financial institution is born, to tackle Rs 2 lakh cr dangerous loans; FM OKs Rs 30k cr govt assure

Finance Minister Nirmala Sitharaman
(Picture: PTI)

FM Nirmala Sitharaman LIVE: Finance Minister Nirmala Sitharaman at this time introduced the Union Cupboard’s approval for a authorities assure of Rs 30,600 crore for securities receipts issued by the Nationwide Asset Reconstruction Firm (NARCL). “NARCL pays as much as 15 per cent of the agreed worth for the loans in money and the remaining 85 per cent can be government-guaranteed safety receipts,” Finance Minister introduced. The Finance Minister, addressing the media, added that ensures can solely be invoked by banks on decision or liquidation of the stated property. The NARCL will take up

MGNREGA: 100 days of labor? Barely 1 / 4 

The federal government says a mean of 51.52 days of labor was offered underneath the scheme in 2020-21, 48.4 days in 2019-20 and 50.88 days in 2018-19.

The Mahatma Gandhi Nationwide Rural Employment Assure Scheme (MGNREGS), the high-profile rural welfare scheme fortified by a regulation handed by Parliament in 2005, holds a promise to supply a minimum of 100 days of wage employment in a monetary yr to each rural family whose grownup member volunteers to do unskilled guide work. However even throughout 2020-21, the yr by which the Centre launched the very best quantity (`1.1 lakh crore) for the

Council to debate bringing petrol and diesel beneath GST

These loans are to be repaid by way of cess proceeds. The cesses on demerit items are getting used for compensating states for income shortfall in opposition to the assured annual development of 14%.

Amid a raging row over the hefty taxes on petrol and diesel, the Items and Companies Tax (GST) Council will deliberate on Friday on bringing petrol and diesel beneath the GST regime at the same time as it’s set to kind out the vexatious difficulty of whether or not and the way to compensate states for any GST income shortfall past June 2022, sources instructed FE.