{"id":86375,"date":"2019-12-04T16:08:14","date_gmt":"2019-12-04T10:38:14","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=12125"},"modified":"2019-12-04T16:08:14","modified_gmt":"2019-12-04T10:38:14","slug":"gst-council-rings-first-alarm-bells-on-revenue","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/gst-council-rings-first-alarm-bells-on-revenue\/","title":{"rendered":"GST Council rings first alarm bells on revenue"},"content":{"rendered":"\n<p><strong>News:<\/strong>The GST Council has written to states telling them that the GST and compensation cess collections are unlikely to be met this year.<br><\/p>\n\n\n\n<p><strong>Facts:<\/strong><br><\/p>\n\n\n\n<p><strong>About GST Compensation Cess:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A cess is a tax that is levied by the government to raise funds for a specific purpose.<\/li><li>As part of the GST reforms, the GST Compensation Cess has been introduced through the GST (Compensation to States) Act, 2017.<\/li><li>According to the Act,states are guaranteed compensation for any revenue shortfall below 14% growth (base year 2015-16) for the first five years ending 2022.<\/li><li>The GST Compensation cess has to be paid every two months by the Centre to states.<\/li><li>However,due to a shortfall in tax collections,the Centre is unable to compensate states for loss of revenue.<\/li><\/ul>\n\n\n\n<p><strong>What is the way forward?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The GST Council has decided to comprehensively review the tax structure in the wake of growing revenue concerns.<\/li><li>The review will include exempted items,GST and compensation cess rates and revenue augmentation measures.&nbsp;<\/li><li>However,since the compensation cess is imposed only on luxury and sin goods under GST, any measure to generate more cess collections would either include imposing a higher cess on those items or tinkering at the highest 28% tax slab under the indirect tax regime.<\/li><\/ul>\n\n\n\n<p><strong>Additional information:<\/strong><br><\/p>\n\n\n\n<p><strong>About GST Council:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Goods &amp; Services Tax(GST) Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.<\/li><li>As per Article 279A (1) of the constitution, the GST Council was constituted by the President.<\/li><li>The council consists of the following members: (a) The Union Finance Minister is the Chairperson (b) The Union Minister of State in-charge of Revenue of finance and (c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:The GST Council has written to states telling them that the GST and compensation cess collections are unlikely to be met this year. Facts: About GST Compensation Cess: A cess is a tax that is levied by the government to raise funds for a specific purpose. As part of the GST reforms, the GST Compensation&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/gst-council-rings-first-alarm-bells-on-revenue\/\">Continue reading <span class=\"screen-reader-text\">GST Council rings first alarm bells on revenue<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3959,3204,3446],"class_list":["post-86375","post","type-post","status-publish","format-standard","hentry","category-economy","tag-gst-compensation-cess","tag-gst-council","tag-states","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704777317},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86375","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=86375"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86375\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}