<p dir="ltr">The West Bengal government has urged the Centre to extend the Goods and Services Tax (GST) compensation period to states for another three to five years. </p>.<p dir="ltr">Chandrima Bhattacharya, state’s minister of state (independent charge), finance, on Friday presented the state’s budget. The minister, in her speech, stated that the GST (that came into effect in July 2017) is an important component of the overall revenues. The GST Act provides for compensation for five years. This was to cover for loss of revenue during the first five years on account of the GST’s implementation.</p>.<p dir="ltr">“At a time when the five year period was decided no one could envisage that the entire world will be hit by such a severe pandemic causing a deadlock in every sphere of life and having such a devastating impact on the economy,” the finance minister stated. </p>.<p dir="ltr">The minister added that the Centre has, so far, refused to propose to the GST Council an extension of the compensation to states. “We urge the Union Government through this August House that the GST compensation period must be extended for at least another three to five years beyond June 2022, to help all states tide over the financial stress triggered by the pandemic,” the budget statement adds.</p>.<p dir="ltr"><strong>Tax exemption proposals in the budget</strong></p>.<p dir="ltr">The state budget for the financial year, ahead, proposes an outlay of Rs 3.21 lakh crore. The government has proposed exemptions to battery-operated electric- and CNG vehicles, home buyers, and the tea industry.</p>.<p dir="ltr">For the battery-operated two- and four-wheeler electric vehicles (BEV), and on all categories of CNG vehicles, an exemption is proposed in registration fees and road tax for the next two years, starting next financial year.</p>.<p dir="ltr">The home buyers were offered exemption of two per cent rebate on stamp duty and 10 per cent rebate on circle rate of land, or property, in the current financial year. The exemption has been extended for six months, up to 30 September, in the next financial year.</p>.<p dir="ltr">To support livelihood in the tea sector, the state government intends to exempt payment of rural employment cess (under West Bengal Rural Employment and Production Act 1976) and education cess (under West Bengal Primary Education Act 1973) for the next year. To offer relief to tea gardens, waiving of the agricultural income tax for the next financial year has been proposed.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>
<p dir="ltr">The West Bengal government has urged the Centre to extend the Goods and Services Tax (GST) compensation period to states for another three to five years. </p>.<p dir="ltr">Chandrima Bhattacharya, state’s minister of state (independent charge), finance, on Friday presented the state’s budget. The minister, in her speech, stated that the GST (that came into effect in July 2017) is an important component of the overall revenues. The GST Act provides for compensation for five years. This was to cover for loss of revenue during the first five years on account of the GST’s implementation.</p>.<p dir="ltr">“At a time when the five year period was decided no one could envisage that the entire world will be hit by such a severe pandemic causing a deadlock in every sphere of life and having such a devastating impact on the economy,” the finance minister stated. </p>.<p dir="ltr">The minister added that the Centre has, so far, refused to propose to the GST Council an extension of the compensation to states. “We urge the Union Government through this August House that the GST compensation period must be extended for at least another three to five years beyond June 2022, to help all states tide over the financial stress triggered by the pandemic,” the budget statement adds.</p>.<p dir="ltr"><strong>Tax exemption proposals in the budget</strong></p>.<p dir="ltr">The state budget for the financial year, ahead, proposes an outlay of Rs 3.21 lakh crore. The government has proposed exemptions to battery-operated electric- and CNG vehicles, home buyers, and the tea industry.</p>.<p dir="ltr">For the battery-operated two- and four-wheeler electric vehicles (BEV), and on all categories of CNG vehicles, an exemption is proposed in registration fees and road tax for the next two years, starting next financial year.</p>.<p dir="ltr">The home buyers were offered exemption of two per cent rebate on stamp duty and 10 per cent rebate on circle rate of land, or property, in the current financial year. The exemption has been extended for six months, up to 30 September, in the next financial year.</p>.<p dir="ltr">To support livelihood in the tea sector, the state government intends to exempt payment of rural employment cess (under West Bengal Rural Employment and Production Act 1976) and education cess (under West Bengal Primary Education Act 1973) for the next year. To offer relief to tea gardens, waiving of the agricultural income tax for the next financial year has been proposed.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>
