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
DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.
The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…
The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…
Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…
Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…
A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…
Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…