Source: Indian Express Context: Recently, the Centre has acceded to the states’ request, that it will borrow Rs 1.1 lakh crore to compensate them for the shortfall in their GST revenues. What is the Background? For bringing the states in to GST ambit, The Centre assured the states of a 14 per cent growth in… Continue reading GST Compensation Issue
Tag: ECO_0
Retrospective taxation – Vodafone case
Source- The Hindu Syllabus- GS 3- Role of external state and non-state actors in creating challenges to internal security. Context– The Vodafone Group has won one of the most high-stakes legal battles involving a foreign investor and the Indian state under international law. The retrospective taxation was in violation of the BIT and the United Commission on International Trade… Continue reading Retrospective taxation – Vodafone case
GST Compensation disagreement between the Centre and the States
Source- The Hindu Syllabus- GS 3- Government Budgeting. Context- The onus would be on Centre to resolve this impasse with regard to compensation cess of GST reforms. What is GST compensation? The Centre is obliged to pay to the States, for a period of five years, compensation for revenue shortfalls in return for their having ceded the power… Continue reading GST Compensation disagreement between the Centre and the States
India’s Tax Charter
Source: Indian Express Syllabus: GS3: issues relating to Planning, Mobilization of Resources Context: In the wake of pandemic and slowdown in the economy, tax system needs efficiency in case selection and consistency in assessment. Need of efficient tax system: To improve tax collection:An economic contraction this year will deal a severe blow to tax collections. Rising uncertainty… Continue reading India’s Tax Charter
GST compensation Standoff
Source- The Hindu Syllabus- GS 3- Government Budgeting Context- Differences of opinion have emerged between Centre and states at the 41st Goods and Service Tax [GST] Council meeting over compensation deficit. GST- Goods and Services Tax, is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. GST is… Continue reading GST compensation Standoff
GST – Grand Bargain 2.0
Source– The Hindu Context– A Grand Bargain 2.0 between the center and the states is needed in longer run to tackle the issues related to GST compensation to the States. Value added tax [VAT] – An indirect value added tax which was introduced into Indian taxation system on April 1, 2005. VAT was introduced to make… Continue reading GST – Grand Bargain 2.0
