The central Government released Rs 35,298 crore to the state under GST compensation. For the implementation, this amount was given to the state to compensate the revenue. Central government has to face many criticisms for delay in compensation.
GST came into effect from 1 July 2017. With the implementation of GST taxes like VAT were absorbed in it. Under the GST states have rights to compensate the revenue from the center if new tax system is less than 14% annual revenue growth, based on 2016-17 revenue. This argument has been made for. Amount of the compensation is released every two months. But it was pending from August.
Credibility of statistic will be assured : Finance Minster Nirmala Sitharaman
Finance Minister Niramala Sitharaman said that the government is focusing on improving the credibility of data. She said this in the midst of many ways of calculating various economics data. She said that various aspects including Gross Domestic Product (GDP) inflation and employment are being consider.
Delay in payment due to tax reduction : Finance Minister
The Finance Minister assured the states on Monday that Union Government would not back out of its promise to the revenue under GST. Though she admitted that there was a delay in payment of compensation but she said that this happened due to lack of tax collection. Finance Minster said that states should not be disturbed by this. GST council meeting to be held on 18 December.
It will take time to see the result of GST : Bibek Debroy
Bibek Debroy, the Chairman of the the Prime Minister’s Economic Advisory Council, said on Monday that it would be take time for GST results to be seen. He said that work is being done at GST right now, not that you will get one and a half to two percent of GDP night. The growth rate came down to 4.5% for the quarter ended September.