The impact of Kovid-19 on tax revenue will be discussed in the meeting of Goods and Services Tax (GST) Council on Friday. Sources say that in this meeting, a decision can be taken on the framework of compensation payments to the states. The 40th meeting of the GST Council led by Finance Minister Nirmala Sitharaman will be through video conferencing. Finance ministers of the states will also participate in it.
Waiver of late fee may also be considered
Apart from this, the council will also consider waiving the late fee for not filing GST returns during August 2017 to January 2020. While there will be no discussion on the change in tax rates in this meeting, it is understood that the council will consider ways to raise funds to compensate the revenue loss to the states from the implementation of GST.
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Sources said that the meeting will review the impact on revenue of the Center and states due to Corona virus. Also, measures to compensate for this will be considered. The government has not released the GST collection data for the months of April and May due to shortfall in tax collection and extending the date of filing of GST returns.
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In the last meeting of GST Council held on 14 March, Sitharaman had said that the Central Government will look into the legal validity of the GST Council to raise debt from the market to meet the compensation requirement. Under the GST Act, states have been guaranteed compensation for the first five years after the implementation of GST from July 1, 2017.