HomeBusinessKerala Finance Minister K N Balagopal Seeks Extension Of GST Compensation Regime

Kerala Finance Minister K N Balagopal Seeks Extension Of GST Compensation Regime

''Extend GST Compensation Beyond June 2022'': Kerala Finance Minister

Kerala Finance Minister K N Balagopal pitched for extending the GST compensation

Kerala Finance Minister K N Balagopal on Saturday pitched for extending the GST compensation past June subsequent yr as he highlighted that the state is already grappling with vital income shortfall.

Addressing the media right here, the minister stated the state is just not getting its due within the wake of the fifteenth Finance Commission devolution suggestions.

Kerala will probably be receiving GST (Goods and Services Tax) compensation of over Rs 13,000 crore and one other one-time grant of over Rs 19,000 crore within the present fiscal ending March 2022, he famous.

In case the GST compensation ends subsequent yr, then the state will face additional income shortfall, he stated and expressed hope that the compensation regime can be prolonged.

The regime of paying compensation to states for income shortfall ensuing from subsuming their taxes equivalent to VAT within the uniform nationwide tax GST will finish in June subsequent yr.

However, the cess which is at present levied on high of the GST charge on sure luxurious and sin items to fund the compensation quantity for states will proceed to be levied until March 2026. The collections will probably be used to repay the borrowings that needed to be finished since 2020-21 to pay for state compensation.

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