Syllabus: Economy Source: TH Context: The abolition of the GST compensation cess marks a turning point in Centre–State fiscal relations. Several States have raised concerns over the loss of fiscal autonomy and revenue stability, demanding reforms in India’s tax-sharing mechanism to strengthen cooperative federalism. About Restoring Fiscal Space for the States: Fiscal Policy Evolution …
Syllabus: Economy Source: TH Context: The Union government’s proposal to shift GST into a two-tier structure of 5% and 18% is aimed at simplification and competitiveness, but it may cause a short-term revenue loss of ₹60,000–1,00,000 crore. With the five-year compensation scheme (2017–22) having ended, the debate over whether States should be compensated has resurfaced. …
Continue reading “Should States Be Compensated for Revenue Loss from GST Reforms?”
GS Paper 2: Syllabus: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Context: The Centre has released the entire amount of Goods and Services Tax (GST) compensation payable to States up to May 31, 2022 by releasing an amount of ₹86,912 crore. This is …
GS Paper 2: Syllabus: Parliament and State Legislatures – structure, functioning, conduct of business, powers & privileges and issues arising out of these. Context: The Supreme Court has upheld Gujarat High Court ruling which said the Centre cannot levy Integrated Goods and Services Tax (IGST) on ocean freight from Indian importers. …
Continue reading “GST Council’s proposals not binding on Centre, States:”
GS Paper 2: Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Context: Finance Ministers of several States have demanded that the GST compensation scheme be extended beyond June 2022. What’s the issue? The adoption of GST was made possible by States …
Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. GST compensation: Context: The Centre will release ₹30,000 crore as GST compensation to States this month, from the compensation cess collections during the year. The pending compensation dues to States for 2020-21 are expected to …
In what appears to be a relief for the states, the Centre has said it will borrow up to Rs 1.1 trillion, which is the estimated revenue shortfall on account of implementing goods and services tax. The centre will then lend the money to the states under a special window. The extra fund raising was …
Continue reading “THE BIG PICTURE- GST SHORTFALL: CENTRE TO BORROW”
In what appears to be a relief for the states, the Centre has said it will borrow up to Rs 1.1 trillion, which is the estimated revenue shortfall on account of implementing goods and services tax. The centre will then lend the money to the states under a special window. The extra fund raising was …
Continue reading “THE BIG PICTURE- GST SHORTFALL: CENTRE TO BORROW”
Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. GST Compensation: Context: The Goods and Services Tax (GST) Council has failed again to reach an agreement on the contentious issue of borrowings to meet shortfalls in cess collections used to recompense the States for revenue losses from the …
