{"id":39380,"date":"2018-12-24T17:32:09","date_gmt":"2018-12-24T12:02:09","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=39380"},"modified":"2018-12-24T17:32:09","modified_gmt":"2018-12-24T12:02:09","slug":"govt-may-continue-gst-compensation-scheme-till-2025","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/govt-may-continue-gst-compensation-scheme-till-2025\/","title":{"rendered":"Govt may continue GST compensation scheme till 2025"},"content":{"rendered":"<p><a href=\"https:\/\/www.livemint.com\/Politics\/Iq0tB2Nsd1jBbg4VGJm4GO\/Govt-may-continue-GST-compensations-till-2025.html\"><strong>Govt may continue GST compensation scheme till 2025<\/strong><\/a><\/p>\n<p><strong>News<\/strong>:<\/p>\n<p>Government to Compensate GST loses to States for additional three years till 2025.<\/p>\n<p><strong>Important Facts:<\/strong><\/p>\n<ul>\n<li>As mandated by Constitution the Union government plans to create a backstop facility for states to receive compensation for three additional years to implement the nationwide goods and services tax (GST) after the expiry of the first five years in 2022<\/li>\n<li>Decision aiming at ensuring that states grappling with a revenue shortfall after the implementation of the GST regime do not face a sudden fiscal shock when the five-year transition period ends in 2022.<\/li>\n<li><strong>Constitutional guarantee for compensation of GST revenue losses for the first five years<\/strong> has given states the confidence that the central government does not take their needs for granted. This, along with the finance commission grant, will take care of states\u2019 revenue requirements<\/li>\n<li>With the implementation of GST, states no longer have the full flexibility to raise additional taxes to meet any spurt in their revenue needs without the consent of the GST Council, therefore, dependent on the centre to a great extent.<\/li>\n<\/ul>\n<p><strong>How the devolution will be calculated<\/strong>:<\/p>\n<ul>\n<li><strong>The GST revenue trends of states would be a key parameter<\/strong> in finalizing the commission\u2019s formula for devolution of central government\u2019s tax revenues to states<\/li>\n<li>The backstop facility would help continue compensation through an annual transfer of the center\u2019s tax revenue to the states on <strong>recommendation of 15th Finance Commission<\/strong>.<\/li>\n<\/ul>\n<p><strong>Additional Facts:<\/strong><\/p>\n<ul>\n<li>The Lok Sabha introduced the <strong>GST Compensation to States Bill<\/strong> in March 2017, and the bill was created to compensate states in case they have suffered any loss in revenue owing to GST implementation.<\/li>\n<li>The compensation offered by the bill is for a five-year period starting from the date when the State GST Act is implemented by the state.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Govt may continue GST compensation scheme till 2025 News: Government to Compensate GST loses to States for additional three years till 2025. Important Facts: As mandated by Constitution the Union government plans to create a backstop facility for states to receive compensation for three additional years to implement the nationwide goods and services tax (GST)&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/govt-may-continue-gst-compensation-scheme-till-2025\/\">Continue reading <span class=\"screen-reader-text\">Govt may continue GST compensation scheme till 2025<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-39380","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700774158,"cached_date":1704912259},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/39380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=39380"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/39380\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=39380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=39380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=39380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}