GST Council Meet Highlights: From Jan 1, taxpayers with less than Rs 5 cr turnover need not file monthly returns, says Finance Secy

Finance Minister Nirmala Sitharaman, on Monday, announced decisions taken during the 42nd GST Council meeting. The government said that it will disburse Rs 20,000 GST compensation cess to all the states by tonight. The payment of GST compensation to states became an issue after revenues from the imposition of cess started dwindling since August 2019. In the current fiscal, the states are staring at a staggering Rs 2.35 lakh crore Goods and Services Tax (GST) revenue shortfall.

Thank you for following Deccan Herald's live updates on Finance Minister's address to media on decisions taken at the 42nd GST Council meet today.

In certain classes of goods where government feels the need for closer tracking, HSN codes will be of 8 digits These will be notified by the government: FinMin

GSTR-2B provided to help taxpayers calculate input tax credits: Finance Secy

GSTR-2B has been provided to help taxpayerscalculate input tax credit; it will give taxpayers a complete idea of the ITC they are entitled to: Finance Secretary

GST Council'sdecision to make returns for small taxpayers on a quarterly basis rather than a monthly basis will be a major relief to small taxpayers No. of returns comes down from 24 monthly returns to 8 returns, from 1st January 2021, says Finance Secretary.

GST Council decides to extend compensation cess beyond June 2022: Finance Minister Nirmala Sitharaman

GST Council exempts satellite launch services by ISRO, Antrix: Finance Secretary after Council meeting

Not asking states that received more IGST to pay back dues now: FM

A committee under the Chairpersonship of Bihar Minister Sushil Modi has worked out a way to resolve IGST devolution issue Rs. 24,000 crore which has to go to states that received less will get the amount now We aren't asking states that received more to pay back dues now: FM

Taxpayers with annual turnover less than Rs 5 crore not required to file monthly GST returns: Ajay Bhushan

From the first of January onwards, the taxpayers whose annual turnover is less than Rs 5 crores will not be required to file monthly returns i.e GSTR 3B and GSTR1. They will only file quarterly returns: Finance Secretary Ajay Bhushan Pandey at the 42nd GST Council meeting

GST Council has taken up the long-pending issue of Integrated Goods & Services Tax; earlier there was no formula for devolution of IGST, which had resulted in several anomalies in its distribution: Sitharaman

Rs 24,000 crore of IGST to be released to the States that had received less earlier, will be disbursed by the end of next week: FM Sitharaman on outcomes of 42nd GST Council meeting

Rs 20,000 crores to be disbursed to all the states by tonight: Sitharaman

This year's compensation cess collected amounting to Rs 20,000 crores will be disbursed to the States tonight: Finance Minister Nirmala Sitharaman on 42nd GST Council meeting

10 states demand full GST compensation payment: Kerala Finance Minister

FM to hold media briefing at 5:45 pm

FM Nirmala Sitharamanto hold a virtual media briefing on the outcomes of the 42nd GST Council meeting at 5:45 PM in New Delhi today.

Stop threats: States to tell Centre at GST Council meet today

The Centre-state tussle over the issue of goods and services tax compensation is set to snowball into a major flashpoint at the crucial GST Council meet on Monday.

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The Centre had released over Rs 1.65 lakh crore in 2019-20 asGSTcompensation. However, the amount of cess collected during the 2019-20 was Rs 95,444 crore.

Govt's stand on GST compensation shortfall

The Centre has argued that the revenue accruing fromGSTcompensation cess goes to the states and the Centre cannot borrow on the security of the tax it does not own.

Under theGSTstructure, taxes are levied under 5, 12, 18 and 28 per cent slabs. On top of the highest tax slab, a cess is levied on luxury, sin and demerit goods and the proceeds from the same are used to compensate states for any revenue loss.

Non-BJP ruled states at loggerheads with the Centre over issue of funding the shortfall

Chief Ministers of six non-BJP ruled states — West Bengal, Kerala, Delhi, Telangana, Chhattisgarh and Tamil Nadu -- have written to the Centre opposing the options which require states to borrow to meet shortfall.

How Covid-19 impacted GST revenue

In the current fiscal, the states are staring at a staggering Rs 2.35 lakh crore Goods and Services Tax (GST) revenue shortfall.

Of this, as per Centre's calculation, about Rs 97,000 crore is on account ofGSTimplementation, and rest Rs 1.38 lakh crore is the impact of Covid-19 on states' revenues.

Oppn to object Centre's borrowing options

While as many as 21 states, mostly ruled by BJP or parties which have supported it on issues, had till mid-September opted to borrow Rs 97,000 crore to meet theGSTrevenue shortfall in the current fiscal, opposition-led states like West Bengal, Punjab and Kerala have not yet accepted the borrowing option given by the Centre.

GST Council meet underway

Finance Minister Nirmala Sitharaman chairs GST Council meet. The meetmay turn into a stormy affair, with non-BJP ruled states still being in disagreement with the Centre on the compensation issue.