News: Government has roped in the Income Tax Department to tap illicit incomes as part of a crackdown against fraud companies rigging the Goods and Services Tax (GST) regime. Facts: How did fraudsters cheat the Government? They have floated multiple dummy firms, obtained GST registrations, issued fake GST invoices without actual supply of services and passed on… Continue reading Government ropes in I-T department to crack down on GST fraud
Tag: ECO_03
Centre gives in, says will borrow to make up for states’ GST shortfall
News: The Central government has decided to borrow up to Rs 1.1 lakh crore on behalf of the states to meet the shortfall of Goods and Services Tax(GST) compensation. Facts: Borrowing Mechanism: Under the Special Window, the estimated shortfall of Rs 1.1 lakh crore will be borrowed by Centre in appropriate tranches.The amount so borrowed… Continue reading Centre gives in, says will borrow to make up for states’ GST shortfall
GST Compensation Issue
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
C&AG’s report on GST compensation cess
Source- The Hindu Syllabus- GS 3- Government Budgeting. Context- In its audit report on the accounts of the Union Government, the Comptroller and Auditor General of India (CAG) has pointed out grave lapses in the accounting of revenue from the GST compensation cess. What are the key findings of the CAG report related to cess? Retained in the Consolidated Fund… Continue reading C&AG’s report on GST compensation cess
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
GST Compensation Issue and cooperative federalism
Source: Indian Express Context: Issue of compensating states for the loss of their GST revenues What is the background of the issue? Creation of the GST Council in 2017, to levy GST (unified domestic consumption tax) was hailed as a great example of cooperative federalism. Concerned with loss of revenue due to the new GST… Continue reading GST Compensation Issue and cooperative federalism
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
