Union Finance Minister Nirmala Sitharaman on 18 Saturday said that the entire pending Good and Service Tax compensation will be cleared. GST Council reduced the GST on liquid jaggery, pencil sharpeners, and certain tracking devices, Union Finance Minister Nirmala Sitharaman said.
“We have announced today that the entire due on the pending balance of the GST compensation will be cleared as of today…In other words, the entire pending balance of the GST compensation – a total of ₹16,982 crores for June – will be cleared,” she said while addressing the media after the GST Council meeting.
Though she maintained that the amount is not really available in the compensation fund as of today. However, the government would release this amount from their own resources and the same amount will be recouped from the future compensation cess collection.
“With this release, the Centre would clear the entire provisionally admissible compensation cess dues for 5 years as envisaged in the GST (Compensation to States) Act, 2017,” she said
Although this amount is not really available in the compensation fund as of today, we have decided to release this amount from our own resources and the same amount will be recouped from the future compensation cess collection.
Briefing media after the 49th meeting of the GST Council, the minister also informed that reports of the GoM (Group of Ministers) on checking tax evasion by pan masala and gutkha industry, and on Goods and Services Tax Appellate Tribunals (GSTATs), have been taken on board.
FM Nirmala Sitharaman said all the GST compensation dues will be cleared, including Rs 16,982 crore for the month of June.
The finance minister said the GST Council has decided to rationalise late fees on the filing of annual GST returns after the due date.
Finance ministers of states and UTs (with legislature) and senior officials of Union Government and states participated in the meeting.