Chhattisgarh Chief Minister Bhupesh Baghel on Sunday reiterated his demand to the Center to extend the period of compensation to the states for five years in lieu of reduction in revenue due to the implementation of GST.
Chhattisgarh Chief Minister Bhupesh Baghel reiterated his demand from the Center that the period of compensation given to the states should be extended by five years.
Chhattisgarh Chief Minister Bhupesh Baghel on Sunday reiterated his demand from the Center that GST In lieu of reduction in revenue due to implementation, the period of compensation given to the states should be increased for five years. He also demanded revision of the rates of royalty received by Chhattisgarh in exchange for coal and other major minerals. Addressing the seventh meeting of the Steering Committee of NITI Aayog, Baghel said that GST compensation, transfer of the amount collected as additional tax from coal block companies and Rs 11,828 crore spent by the state government for the eradication of Naxalism should be reimbursed to the state. demands of.
Demand to continue GST compensation for five years
In a statement issued by the Chhattisgarh government, Baghel was quoted as saying that the states have suffered a revenue loss due to the GST tax system. No arrangement has been made by the Center to compensate the state for the revenue loss of about Rs 5,000 crore due next year. Therefore, the GST compensation grant should continue for the next five years after June 2022.
The decision was taken to compensate the states on 1 July 2017 when the nationwide GST was implemented, the period of which ended on 30 June this year. The non-BJP ruled states of Chhattisgarh, Kerala and Rajasthan have already demanded an extension of the compensation period by five years.
Increased pressure on state resources: Baghel
Baghel said that Chhattisgarh had received Rs 13,089 crore less from central taxes in the three-year budget of the central government, which has increased the pressure on the state’s resources. He also requested revision of royalty rates for coal and other major minerals. The Chief Minister also demanded early action on other pending demands of the state government like refund on deposits in the New Pension Scheme.
Apart from this, let us tell you that the Finance Ministry has recently clarified that the cancellation is related to the service, so additional money will have to be paid in the form of GST on the cancellation charges. The Tax Research Unit of the Ministry of Finance has issued 3 circulars giving many clarifications regarding GST. One of which is related to ticket cancellation.
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