NEW DELHI: Amid complaints from states and Union Territories regarding the delay in GST compensation to them, the Central government has formed a Group of Ministers (GoM), chaired by Union Finance Minister Nirmala Sitharaman to sort out the unsettled IGSTs.
According to the government circular, the GoM will study in detail the issue of settlement of IGST as on March 31, 2018.
“GoM to examine the status of the amount of IGST remaining unapportioned as on March 31, 2018, as per the extant legal provisions and what action is required to be taken,” the circular reads.
The GoM has members from Bihar, Delhi, Puducherry, Tamil Nadu, Punjab, Odisha and Chattisgarh. Recently, Delhi government deputy chief minister Manish Sisodia had met Sitharaman over the issue.
“I had reiterated my concern regarding the revenue loss of Rs 3,202 crore to Delhi because of the decision of the Government of India to devolve the funds to the states… Based on the above discussion, the council decided to constitute a Group of Ministers to study the issue of IGST settlement as on March 31 and to address any possible dispute arising of the same. I am informed that the constitution of the said GoM is still pending,” Sisodia had written.
The GoM formation comes ahead of the 38th GST Council meeting, scheduled to happen in the second half of this month, amid revenue concerns. Earlier this week, the GST Council had informed states that GST and compensation cess collections in the past few months have been a “matter of concern”.
“The compensation requirements have increased significantly and are unlikely to be met from the compensation cess being collected,” the letter said. Separately, the 15th Finance Commission, which is to decide on the division of tax and other resources between the Centre and the states, submitted its report for FY 2020-21 to President Ram Nath Kovind on Thursday.
FC submits FY21 report
The Finance Commission (FC)submitted its report for the financial year 2020-21 to President Ram Nath Kovind on Thursday. The commission headed by N K Singh apprised the President of the recommendations contained therein. The FC had a wide-ranging term of reference in the Presidential Notification, said an official statement.