Ahead of the council's first meeting, finance ministers of 8 non-BJP-ruled states have devised a joint strategy to press for a zero tax rate on Covid essentials, sources said.
Punjab Finance Minister Badal said even though the GST Council is meeting after 8 months, the agenda for it is 'mundane' and does not deal with substantive issues.
At the 42nd GST Council meeting in October 2020, it was decided that the compensation cess would be levied beyond the transition period of five years to meet the revenue gap.
Frequent changes in tax laws leading to uncertainties for businesses and lowering of rates without a corresponding rise in tax buoyancy among factors for lack of buoyant GST collection.
The finance minister questioned if the GST Council can intervene if an individual state wants to borrow from market, but opposition-ruled states say it’s ‘illegal’.
Centre proposes special RBI window for states to borrow to meet the shortfall as cess will make up for only 22% of the losses. States, instead, suggest Centre should borrow.
Punjab minister Manpreet Singh Badal says not paying GST dues would amount to ‘sovereign default’, while Bihar Deputy CM Sushil Modi says it’s the govt’s ‘moral commitment’.
GST council votes to levy uniform 28% tax on both state and private lottery, which will come into effect from March 2020. The tax rate earlier was 12%.
With a growing indigenous base of drone manufacturers and exporters, and incentives from government, industry sentiment is bullish. However, some concerns remain.
That temples were destroyed and mosques built is undisputed history. The past can’t be changed, but we can’t deny the wrongs of the past either before we consider reconciliation.