GST compensation reduction estimated to be Rs 2.69 lakh crore in the current financial year – gst compensation reduction estimated to be rs 269 lakh crore in the current financial year
The Center expects to collect more than Rs 1.11 lakh crore from the cess levied on luxury, non-defective items. This amount will be given as compensation to compensate for the shortfall in the revenue of the states due to the implementation of Goods and Services Tax (GST).
Under the GST regime, the remaining 1.58 lakh crore rupees of loans will be taken as promised to compensate for the reduction in revenue.
According to the agenda note shared with the states ahead of the GST Council meeting on Friday, though the Center hopes to improve GST revenue in the current financial year, there is something between the need for compensation and the amount to be raised through cess There will be a difference.
In the budget for the financial year 2021-22, the GST revenue was estimated to increase by 17 percent. In this sense, the monthly gross GST revenue works out to Rs 1.1 lakh crore.
Based on this, it is estimated that in the period between February 2021 to January 2022, the protected revenue (compensation if there is a decrease in revenue) and the decrease in actual revenue will be close to Rs 1.6 lakh crore after the issuance of compensation.
In the last financial year 2020-21, the Center took a loan on behalf of the states to compensate for the reduction in GST revenue and released Rs 1.10 lakh crore to them. Apart from this, Rs 68,700 crore was collected by way of cess.
The meeting of the GST Council is being held after about eight months on May 28.
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