Centre will clear GST dues of states, TS to get Rs.1835 cr in arrears
New Delhi: The GST Council on Saturday said the Centre had decided to clear the pending balance of GST compensation of Rs.16,982 crore for June 2022. The Centre has decided to release the amount from its own resources and the same will be recouped from future compensation cess collection.
With this, the Centre would clear the entire provisionally admissible compensation dues for five years as envisaged in the GST (Compensation to States) Act 2017.
The Centre will also clear the admissible final GST Compensation to those states who have provided revenue figures certified by the Accountant General which amounts to `16,524 crore.
Of this, Telangana would receive Rs.548 crore. In addition, the GST Council cleared Rs.1,265 crore admissible final GST compensation to Telangana.
Meanwhile, TS finance minister T. Harish Rao stayed away from the council meeting, perhaps in the backdrop of the war of words between BRS leaders and Union finance minister Nirmala Sitharaman on the issue of Chief Minister K. Chandrashekar Rao's criticism of Union Budget.
Briefing media after the 49th meeting of the GST Council, Union finance minister Nirmala Sitharaman informed that reports of the GoM (group of ministers) on checking tax evasion by pan masala and gutkha industry, and on Goods and Services Tax Appellate Tribunals (GSTATs), have been taken on board.
Headed by Union finance minister, the Goods and Services Tax (GST) Council comprises finance ministers of states and UTs (with legislature).
She said the panel recommended reduction of GST rate on Rab (liquid jaggery) from 18 per cent to nil if sold loose or 5 per cent, if pre-packaged and labelled.
For pencil sharpeners, the duty has been reduced to 12 per cent from the current 18 per cent.
It also decided that if a device like a tag-tracking device or data logger is already affixed on a container, no separate IGST would be levied on the affixed device and the nil' IGST treatment available for the containers would also be available to them.
Another important decision includes extending exemption benefit covers on coal rejects supplies to and by coal washery.
The Council has recommended rationalising the late fee for delayed filing of annual returns in Form GSTR-9 for 2022-23 onwards, for registered persons having aggregate turnover in a financial year up to Rs 20 crore.
For registered persons having an aggregate turnover of up to `5 crore in a fiscal, the late fee will be `50 per day, subject to a maximum of 0.04 per cent of turnover. In case of more than Rs 5 crore and up to Rs 20 crore, the fine will be Rs 100 per day, subject to 0.04 per cent of the turnover.
