Kerala Finance Minister KN Balagopal on Saturday advocated for extension of GST compensation past June subsequent yr, as he highlighted that the state is already going through important income shortfall.
Addressing the media in New Delhi, the minister mentioned that the state shouldn’t be getting its due in view of the suggestions of the fifteenth Finance Commission for switch.
He mentioned Kerala would obtain GST (Goods and Services Tax) compensation of over Rs 13,000 crore and a one-time grant of over Rs 19,000 crore within the present monetary yr ending March 2022.
The state will face additional income shortfall if the GST compensation expires subsequent yr, he mentioned and hoped that the compensation system could be prolonged.
The system of requiring states to pay compensation for income shortfalls ensuing from subsuming their taxes comparable to VAT into the uniform nationwide tax GST will expire in June subsequent yr.
However, the cess at the moment levied on high of the GST price on sure luxurious and sin objects will likely be levied until March 2026 to fund the compensation quantity for the states. The assortment will likely be used to repay the borrowings that needed to be accomplished from 2020-21 for fee of state compensation.
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With inputs from TheIndianEXPRESS
