FM to chair 43rd GST council meet today
In the last financial year 2020-21, the Center had taken a loan on behalf of the states to compensate for the reduction in GST revenue and released Rs 1.10 lakh crore to them. In addition, 68,700 crore rupees was collected through cess. The GST Council is meeting on May 28 after about eight months. There are many issues in the meeting of GST Council on 28th of May, due to which the meeting is expected to be uproar this time. Let’s look at those issues:
Zero GST on vaccine
The non-BJP-ruled states are set to exert pressure on the Corona vaccine and all medical devices associated with the corona to be completely tax-free. At the same time, government officials say that it will not be possible to do so. There is every possibility that the meeting will be ruckus.
States will demand GST to make up for the loss
States will seek compensation from the Center due to GST due to corona and lockdown. Experts say that the Center may have to compensate for the GST loss for the second consecutive year. According to experts, the Center may have to pay a compensation of Rs 2.7 lakh crore.
Trouble finding a way to make up for the dwindling tax collections: GST collections are expected to be 30 per cent lower in May due to the second wave of Corona and lockdown. Raising revenue from the GST Council in the current round by raising tax collections can be a big challenge for the government’s necessary expenses.
There will be discussion on the impact on the economy
Due to the economic side effects of the second wave of Corona, GST collections are also said to be adversely affected. The impact of the second wave of Corona on the economy of the states will also be discussed in the meeting. There may also be a discussion on giving some relief to the auto industry in the meeting.
