Wait...

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

GST Council meeting on October 12: Deadlock over borrowing options expected to be resolved.


Date: 12-10-2020
Subject: GST Council meeting on October 12: Deadlock over borrowing options expected to be resolved
After failing to resolve the stalemate over the borrowing options to meet the revenue gap in the previous Goods and Services Tax (GST) Council meeting, a settlement is now expected at the GST Council meeting scheduled on October 12.

The Centre had provided the states with two borrowing options to solve the issue of compensation dues.

The Centre said as many as 21 states opted to borrow Rs 97,000 crore to meet the GST revenue shortfall. Most of these states are ruled by the BJP or parties which have supported it on various issues.

As states are hard-pressed for finances to meet their expenditure, some states like Bihar want the issue of pending compensation dues worth over Rs 2 lakh crore to be settled at the earliest.

In the last meeting, the Council extended the GST compensation cess beyond 2022. However, on the issue of borrowing options to meet revenue shortfall, there was no consensus.

Finance minister Nirmala Sitharaman had said some changes to the borrowing options have already been made, based on states' inputs to meet compensation gap shortfall. Instead of Rs 97,000 crore provided as the first borrowing option earlier, the amount now has been made Rs 1.1 lakh crore.

On repayment schedules, the minister had said interest on the borrowed amount will be the first charge on the cess which gets collected beyond 5 years and next charge could be 50 percent on the principal amount which gets borrowed.

However, due to a lack of consensus in the last meeting, it is possible that the issue could be put to vote, as the non-BJP ruled states would likely push for it. The Centre would, however, resist putting it for voting as borrowing related issues do not come within the Council's jurisdiction.

As most states are hard-pressed to meet their expenditure requirements because of a revenue shortfall, exacerbated by the Covid-19 pandemic, in a letter to the finance minister, Bihar Deputy Chief Minister Sushil Kumar Modi had said the Centre should sort out the issue as fast as possible and let states that have already submitted their choice to borrow.

In August, the Centre had proposed two options to states, to either borrow Rs 97,000 crore (on account of GST implementation) through a special window facilitated by the RBI or to borrow the complete shortfall of Rs 2.35 lakh crore (including Rs 1.38 lakh crore due to COVID) from the market.

The amounts under the two options have since been revised to Rs 1.10 lakh crore and Rs 1.8 lakh crore, respectively.

Source:-moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 26-11-2020
Notification No. 43/2020-Customs
Seeks to further amend notification No. 50/2017-Customs dated 30th June, 2017 so as to prescribe BCD rate of 27.5% on Crude Palm Oil

Date: 26-11-2020
Notification No. 39/2020-Customs (ADD)
Seeks to amend notification No. 51/2015-Customs (ADD), dated 21st October, 2015 to extend the levy of ADD on imports of "Fully Drawn or Fully Oriented Yarn/Spin Drawn Yarn/Flat Yarn of Polyester " originating in or exported from China PR & Thailand , for a further period upto and inclusive of 31st December, 2020

Date: 26-11-2020
Public Notice No. 30/2015-20
Revision of SION A1827 of Export Products - Ossein

Date: 23-11-2020
A.P. (DIR Series) Circular No. 07
Establishment of Branch Office (BO) / Liaison Office (LO) / Project Office (PO) or any other place of business in India by foreign law firms

Date: 20-11-2020
Circular No.51/2020-Customs
Clarifications regarding availment of exemption on temporary import of durable Containers - reg.

Date: 19-11-2020
Notification No. 60/2020-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI

Date: 19-11-2020
Notification No. 61/2020-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI

Date: 19-11-2020
Notification No. 59/2020-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI

Date: 19-11-2020
Notification No. 38/2020 -Customs (ADD)
Seeks to further amend notification No. 56/2015-Customs (ADD) dated 4th Dec, 2015 to extend the levy of Anti-Dumping duty on Phthalic Anhydride originating in or exported from Japan and Russia, up to and inclusive of 31st Jan, 2021.

Date: 19-11-2020
Notification No. 108/2020 - Customs (N.T.)
Exchange rate Notification No.108/2020-Cus (NT) dated 19.11.2020



Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001