Government Released GST Compensation Cess, Says No to COVID Cess

In this pandemic situation, the Central Government has released the Goods and Services Tax (GST) compensation cess dues, which will provide relief to the states and clarified that there would be no levy of disaster cess like COVID-19 cess.

The Central Government has released Rs 15,340 crore to states as GST compensation cess despite insignificant tax collection due to relaxation for return filings and the tax payments due to the nation-wide lockdown. The amount released includes the second tranche of GST compensation cess for the October-November 2019 around Rs 14,100 crore.

Also, the Central Government issued GST Compensation cess around Rs 1,20,498 crore during FY 2019-20 while received only around Rs 95,000 crore from the states.

Also Read: WhatsApp Use Soars for Virtual Hearings on GST and Customs

The Finance Ministry clarified that they have no plan to impose a disaster cess on the GST, to increase resources for dealing with the COVID-19 pandemic. This clarification came given the rumours around the imposition of cess due to COVID-19 epidemic by the Central Government.

The government thought that the imposition of the calamity cess would be nothing less than the adversity itself. Also, the revenue of the businesses are still meagre, and it would be counter-productive. Even the industry will face a severe crisis in the future due to lack of demand, possible labour problems due to the pandemic.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in

You May Also Like

Taxation of dividend income received on or after 1 April 2020 (FY 2020-21)

You may receive a dividend from your equity or mutual fund investments.…
GSTR-9

CBIC has notified an extension of two months to various GST compliance

The government of India has notified yet another extension for the completion…
Gold Jewellery

24K Gold Rate in India for November 2019: Week 4

The fourth week began with the gold rate in India holding at…

Due date to file annual GSTR-4 for FY 2019-20 gets further extended

The government has further pushed the deadline to file the brand new…