GST Collections Touched Rs 1.16 Lakh latest news headlines

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GST Collections Touched Rs 1.16 Lakh Crore In July 2021

GST collections for July 2021 were Rs 1.16 lakh crore

Goods and Services Tax (GST) collections for July 2021 were Rs 1.16 lakh crore, 33 per cent more than the corresponding period of last year.

According to figures released by Finance Ministry on Sunday, gross GST revenue collected in July 2021 are Rs 1,16,393 crore, out of which Central GST is Rs 22,197 crore, State GST is Rs 28,541 crore and Integrated GST is Rs 57,864 crore (including Rs 27,900 crore collected on import of goods) and cess of Rs 7,790 crore (including Rs 815 crore collected on import of goods).

GST collections in July 2020 had stood at Rs 87,422 crore, while sequentially they had stood at Rs 92,849 crore in June this year.

“GST collection, after posting above Rs 1 lakh crore mark for eight months in a row, dropped below Rs 1 lakh crore in June 2021 as the collections during the month of June 2021 predominantly related to the month of May 2021,” the finance ministry said in a statement.

During May 2021, when the country had been severely hit by the second wave of the Coronavirus pandemic, many states were under partial or complete lockdown.

“With the easing out of Covid restrictions, GST collection for July 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace. The robust GST revenues are likely to continue in the coming months too,” the ministry said.

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Latest News Today – Government Releases Rs 75,000 Crore To States As GST

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Government Releases Rs 75,000 Crore To States As GST Compensation

Government has released Rs 75,000 crore to states as GST compensation

The Government on Thursday released an amount of Rs 75,000 crore as compensation to states for Goods and Services Tax (GST).

In a statement issued by the Finance Ministry, it was informed that the amount has been released under the back-to-back loan facility in lieu of GST compensation. This release is in addition to normal GST compensation being released every two months out of actual cess collection, it added further.

“Subsequent to the 43rd GST council meeting held on May 28, 2021, it was decided that the Central Government would borrow Rs 1.59 lakh crore and release it to states with legislature on a back-to-back basis to meet the resource gap due to the short release of compensation on account of inadequate amount in the compensation fund,” the statement said.

This amount is as per the principles adopted for a similar facility in 2020-21, where an amount of Rs 1.10 lakh crore was released to states under a similar arrangement, official sources said.

“For effective response and management of pandemic and a step-up in capital expenditure all states have a very important role to play. For assisting the states in their endeavour, the Ministry of Finance has frontloaded the release of assistance under the back-to-back loan facility during 2021-22 of Rs 75,000 crore (almost 50 per cent of the total shortfall for the entire year) released today in a single installment,” it said.

The balance amount will be released in the second half of 2021-22 in steady instalments.

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Latest News Today – Goods and Services (GST) Council Special Session To Be

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Special GST Council Session To Be Held For Compensation-Related Issues

A special GST Council session will be convened soon, according to the Finance Minister

Union Finance Minister Nirmala Sitharaman on Thursday said a special session of the GST Council will be held soon to discuss all compensation-related issues. She also said that the flow of COVID-19 vaccination across the country will be well managed and all states will be taken care of. “…I have promised to hold a special session, in which we will discuss about, all GST compensation-related issues,” Sitharaman said.

Speaking to reporters, in response to a question on GST compensation to Karnataka, she said, every state’s compensation will be worked out. Asked about the kind of expenditure budgeted for the compensation, Sitharaman said, “I can’t tell you off the cuff. These are amounts which are determined based on the formula which was arrived at last year and that is the basis on which the distribution will start.”

Sitharaman today visited Boeing India and the SELCO Foundation-funded 100-oxygenated bed COVID-Care Centre at Karnataka Power Corporation Ltd.(KPCL), Yelahanka campus here. Asked about shortage of COVID vaccines in the state, the Union Finance Minister said every state gets the allocation as per the intensity of the attack, density of the population and the number of vulnerable populations.

“The central government supplies it (vaccines), well in advance so that they can announce as to how much is being given, seven days prior…this happening every month, it keeps coming,” she said, adding that all states will be taken care of. “The flow will be well managed.I wish to assure through the media that all people’s interest will be taken care of and everybody will be vaccinated,” Sitharaman added.

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Latest News Today – No One Muzzled Bengal Minister Amit Mitra’s Voice At GST

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No One Muzzled Bengal Minister's Voice At GST Council Meet: BJP's Anurag Thakur

Nirmala Sitharaman has never stifled dissent in the GST Council, Anurag Thakur said (File)

New Delhi:

Minister of State (MoS) in the Finance Ministry Anurag Thakur has dismissed the remarks of West Bengal Finance Minister Amit Mitra, who claimed that he was not allowed to speak at the end of the GST Council meeting held in Delhi on Saturday.

Referring to Amit Mitra’s letter to Finance Minister Nirmala Sitharaman in this regard, Anurag Thakur in a series of tweets on Saturday said that in his experience as MoS in the last two years, he had not seen Ms Sitharaman cut off anyone during the GST Council meeting.

“She has patiently given each and every speaker as much time as they needed, even if it meant that discussions went on for long hours,” he said.

This comes after Amit Mitra claimed that he repeatedly tried to voice objections after Nirmala Sitharaman announced the GST Council’s decision, but his “voice was muzzled as the Secretary brought the meeting to a close and the virtual link was cut off”.

Anurag Thakur said Amit Mitra did not have a stable video conferencing connection throughout the meeting, adding that the Revenue Secretary informed Mr Mitra that his line was breaking and he was not audible. “Further, during the speech made by the Uttar Pradesh Finance Minister, nobody heard Amit Mitra speak up nor did he ask to have his opinion heard. Other members can attest to this,” he said.

Anurag Thakur clarified that at the end of the discussion Ms Sitharaman asked the Council whether anyone would like to speak and add their comments but the Bengal minister remained silent.

“Amit Mitra again remained silent and did not speak up. The Finance Minister has never stifled dissent in the GST Council. It is unbecoming of a senior member of the Council to suggest that this has happened. The GST Council embodies the collective spirit of all states towards debate in a healthy manner; it has been and shall continue,” he concluded.

On Saturday, Ms Sitharaman said that recommendations of Group of Ministers (GoM) set up to look into tax relief on Covid-19 medical supplies have been accepted by the GST Council.

The Goods and Services Tax (GST) rate has been reduced from 12 per cent earlier to five per cent now on Covid testing kits, medical grade oxygen and ventilators. For ambulances, the GST rate has been reduced from 28 per cent to 12 per cent and for hand sanitsers from 18 per cent to five per cent. These rates will be valid till September 30.



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Latest News Today – No Tax On Black Fungus Medicine, 5% GST To Continue On

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The GST Council has cut tax on medicines and equipment needed in the fight against COVID-19

New Delhi:

Tax on medicines, some hospital equipment and other items needed in the fight against COVID-19 has been reduced by the Goods and Services Tax Council. The tax cut is based on recommendations by a Group of Ministers amid the pandemic, whose crippling effects on the economy has also hurt household finance, the constitutional body that decides rates for the GST has said.

No tax will be charged for medicines like the monoclonal antibody Tocilizumab and Amphotericin B, used for treating Black Fungus, an opportunistic fungal disease that affects people infected with Covid.

The tax cuts are valid till September 30, and may be extended nearer the deadline.

Covid vaccines continue to be charged a GST of 5 per cent.

There is no change in the GST rate of some items being charged at 18 per cent, such as RT-PCR machines, RNA extraction machines and genome sequencing machines. Genome sequencing kits that are being charged at 12 per cent will continued to be charged at the same rate.

There is also no tax cut on raw material for Covid testing kits.

Other medicines for which GST has been reduced include anti-coagulants like Heparin (from 12 per cent to 5 per cent), Remdesivir (from 12 per cent to 5 per cent) and any drug recommended by the Health Ministry for Covid treatment (from applicable current rate to 5 per cent).

GST has been slashed from 12 per cent to 5 per cent in these equipment: medical grade oxygen, oxygen concentrator and generator including personal import, ventilator, ventilator masks, Bipap machine and high-flow nasal canula device.

All Covid testing kits will be charged at 5 per cent GST, from the earlier 12 per cent. Specified inflammatory diagnostic kits like D-Dimer, IL-6, Ferritin and LDH will also be charged at 5 per cent.

GST Amid COVID-19 by NDTV on Scribd

Finance Minister Nirmala Sitharaman chaired the GST Council meeting today. The leaders at the 44th GST Council meet, before announcing the tax cuts, discussed the report of the Group of Ministers headed by Meghalaya Deputy Chief Minister Conrad Sangma on tax concessions for Covid relief items.

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Latest News Today – Finance Minister Nirmala Sitharaman Chairs 44th GST

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GST Council Meeting: Tax Cut On Most COVID Essentials, Except Vaccines

GST Council Meeting 2021: Finance Minister is chairing the 44th GST Council virtually tomorrow

GST Council Meeting 2021: Finance Minister Nirmala Sitharaman is chairing the 44th good and services tax (GST) council meeting on Saturday, June 12, through video conferencing. According to the Ministry of Finance, the meeting is attended by Anurag Thakur, Minister of State for Finance, along with finance ministers and senior officials of the states and union territories. The meeting is expected to decide on tax cuts for COVID-19 essential items such as medical grade oxygen, hand sanitisers, pulse oximeters, ventilators, oxygen concentrators, as well as black fungus medicine. (Also Read: GST Council Meet: Tax Cut On COVID Essentials, Black Fungus Medicine On Agenda )

After the conclusion of the GST Council meeting, Finance Minister Nirmala Sitharaman will also conduct a media briefing on the outcomes of the Council meet at 2:30 pm in New Delhi, said the finance ministry.

In its previous meeting on May 28, the GST Council referred the decision over the tax rates on COVID vaccines to a group of ministers (GoM). The GST Council meeting will discuss the report of the GOM, headed by Meghalaya Deputy Chief Minister Conrad Sangma, on GST concessions on COVID-19 essential items, and decide on the final GST rates. 

In the previous GST meeting, the tax was exempted on the import of Amphotericin B – the medicine used for the treatment of the black fungus infection. The 43rd GST council meeting on May 28 was conducted after a gap of almost eight months. The earlier one – 42nd GST Council meeting, was held last year, on October 5, 2020.



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Latest News Today – Goods And Services Tax (GST) Collection In May 2021

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GST Collection In May Declines; Holds Above Rs 1 Lakh Crore-Mark For 8th Month In A Row

GST revenue in May 2021 stood at Rs 1,02,709 crore, said the finance ministry

The gross goods and services tax (GST) revenue collected in May 2021 stood at Rs 1,02,709 crore, holding the Rs 1 lakh crore mark for the eighth month in a row, said the Ministry of Finance in a statement released on Saturday. However, on a month-on-month basis, GST revenue collection declined in May from the all-time record high mark of Rs 1.41 lakh crore registered in April 2021. Out of the total gross GST revenue of Rs 1,41,384 crore, the central goods and services tax (CGST) stood at Rs 17,592 crore, while state good and services tax (SGST) stood at Rs 22,653. (Also Read: At Over Rs 1.41 Lakh Crore, GST Collection In April Sets All-Time High Record )

In May, GST revenue collection edged lower due to the lockdown restrictions imposed in various states amid the second wave of the COVID-19 pandemic. The integrated goods and services tax (IGST) stood at Rs 53,199 crore (including Rs. 26,002 crore collected on the import of goods) and the cess was Rs. 9,265 crore (including Rs. 868 crore collected on import of goods). During the month the government settled Rs 15,014 crore to CGST and Rs 11,653 crore to SGST from IGST as regular settlement, said the finance ministry.

The gross GST revenue figures include the GST collection from domestic transactions till June 4, 2021, since taxpayers were provided various relief measures in the form of waiver or reduction in interest on delayed return filing for 15 days for filing month May 202, amid the second COVID-19 curve. 

During the month, revenues from import of goods were 56 per cent higher, while the revenues from the domestic transaction, including the import of services were 69 per cent higher than the revenues from these sources during the corresponding month last year.

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Latest News Today – Nirmala Sitharaman Chairs 43rd GST Council Meet, Tax

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Decision On Tax Cuts On Covid Vaccines By June 8, Says Government

Finance Minister Nirmala Sitharaman chaired the 43rd GST Council meeting

GST Council Meeting 2021: Finance Minister Nirmala Sitharaman chaired the 43rd good and services tax (GST) council meeting on Friday, May 28, through video conferencing. Even though one of the main agendas of the meeting was to deliberate on GST tax on COVID-related essentials, however, no consensus was reached on the reduction of tax rates over vaccines. The decision over tax rates on COVID vaccines was referred to a group of ministers (GOM), which will be announced by June 8, said the Finance Minister while addressing a press conference after the GST Council meet.

According to sources, the GST council had announced that quarterly returns for small traders will continue and has provided relaxation of the late fee penalty for payment of GST. The Council will constitute a group of ministers to examine the Covid cess to be levied in Sikkim on the pharmaceutical and power sectors. 

According to the Ministry of Finance, the meeting was attended by Anurag Thakur, Minister of State for Finance, along with finance ministers and senior officials of the states and union territories. The meeting looked into states’ request for a cut in GST rates on essential Covid-related supplies such as medicines, vaccines, etc.
 

Compensation to states amid revenue shortfall

The GST council meet today is being held after a gap of almost eight months. The previous meeting – the 42nd GST Council meet, was conducted last year, on October 5, 2020.

At its last meeting, the Council decided to extend compensation cess for states beyond the transition period of five years, to meet the revenue gap. The central government also announced that the shortfall amount was increased to Rs 1.10 lakh crores from Rs 97,000 crores under the borrowing option.

Finance Minister Nirmala Sitharaman had announced that 21 states chose the first borrowing option for compensation of revenue shortfall due to the GST implementation. Ms Sitharaman had clarified that the central government was not denying compensation to any state, but those states which have not chosen any borrowing option will have to borrow from the market.

Under the GST law, states were guaranteed to be compensated bi-monthly to make up for the revenue shortfall in the first five years of the GST implementation, starting from July 1, 2017. This was done as states lost autonomy over indirect taxes due to rollout of the GST system. 

The revenue shortfall is calculated assuming a 14 per cent annual growth in GST collections of states, over the base year of 2015-16. Amid the second wave of the pandemic and the induced economic slowdown, GST collections declined, resulting in states still continuing to face a shortfall in revenue.

Tax cut on COVID-related essentials

Recently, Punjab finance minister Manpreet Singh Badal in a letter to Finance Minister Nirmala Sitharaman had asked the central government to consider the GST exemption on essential Covid-related related items such as face masks hand sanitisers, gloves, temperature scanners, PPE Kits, oximeters, ventilators and other such essential medical supplies. He specified that these items attract a basic customs duty of 20 per cent and a GST of up to 18 per cent.

Additionally, a 10 per cent social welfare surcharge is levied on such items. As IGST is charged on the taxable value, which includes import duties, the effective burden exceeds by another 2-3 per cent, added the Punjab finance minister.

Earlier this month, the Finance Minister virtually ruled out exempting COVID-19 medicines, vaccines, as well as oxygen concentrators from the ambit of GST, stating that such an exemption will make the lifesaving essentials costlier for consumers as manufacturers will not be able to offset the taxes paid on inputs.

Presently, domestic supplies and commercial imports of vaccines attract a five per cent GST, while COVID-19 drugs and oxygen concentrators attract a 12 per cent levy. With regard to the issue of compensation payable to states, the central government has estimated the shortfall at Rs 2.69 lakh crore.

Also Read: GST Council To Discuss Tax Rate On COVID Essentials, Compensation To States

Meanwhile, budget 2021-22 assumed a 17 per cent growth in GST revenues, translating into monthly gross GST revenue of Rs 1.1 lakh crore. The GST Council is the statutory body that takes decisions regarding the issues of threshold limit for the applicability of the tax, and the limit for dual control between the central government and the states.



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Latest News Today – Goods And Services Tax (GST) Council To Meet On May 28,

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Next Meeting Of GST Council To Be Held On May 28: Finance Ministry

States have been pressing for waiver of GST on critical items such as vaccines.

Amid a growing chorus over the GST Council meeting not being convened for over seven months, the Union Finance Ministry on Saturday announced that the next meeting of the panel that decides on taxes on goods and services will be held on May 28. After over a dozen central and state levies such as excise duty, service tax and VAT were subsumed in a nationwide Goods and Services Tax (GST) in 2017, the Council, headed by Union Finance Minister and including representatives of all states and union territories, was mandated to meet every quarter to deliberate on issues at hand.

The GST Council last met on October 5, 2020 to finalise contours of borrowings by states to meet shortfall in tax revenues. The meeting got extended and ended on October 12. Union Finance Minister Nirmala Sitharaman will chair the 43rd meeting of the GST Council on May 28, her office tweeted. “Smt @nsitharaman will chair the 43rd GST Council meeting via video conferencing at 11 AM in New Delhi on 28th May 2021. The meeting will be attended by MOS Shri @ianuragthakur besides Finance Ministers of States & UTs and Senior officers from Union Government & States,” it said.

Opposition party-ruled states have been complaining about not holding the GST Council meeting in recent weeks. West Bengal Finance Minister Amit Mitra earlier this week wrote to Sitharaman seeking urgent convening of the meeting to discuss the issue of compensation shortfall to states and other pending items. “You are kindly aware that the GST Council was mandated to meet once in every quarter. Unfortunately, this solemn mandate has been violated twice over, by not calling a meeting of the Council for two consecutive quarters – not even virtually.

“This has undermined a federal institution, where all states are represented irrespective of political parties, regions or size of population, along with the Government of India. I fear that not holding meetings regularly also lead to a trust deficit,” Mitra wrote. When GST was implemented, states were promised that they will be compensated for any shortfall in tax revenues arising out of their taxes being subsumed in a national GST, for the first five years. This was to be done by levy of a cess, on top of the GST rate, on certain luxury and sin goods.

However, the accumulations in the compensation kitty had been falling short of what the states were promised to be paid even before the pandemic broke out. And with the second wave of infections that have forced lockdowns in most states and UTs, the collections are way short. States have also been pressing for waiver of GST on critical items such as vaccines. 

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