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BUSINESS EYE FEBRUARY 24, 2023 | The Indian Eye 30

Govt shares compensation with states

as GST basket gets bigger & stronger

Petroleum products can be part of GST after a nod from the council members

OUR BUREAU
New Delhi
nion Finance Minister Nir-
mala Sitharaman on Satur-
Uday said the entire pending
dues for the GST compensation cess
to the states will be cleared as of
February 18. “Till May 31, we have
already cleared GST compensation,”
the finance minister added. Sitha-
raman said the entire pending bal-
ance of the GST compensation cess
-- a total of Rs 16,982 crore -- will be
cleared and “although this amount is
not available with the compensation
fund as of today, we have decided to
release from our own resources and
the same amount will be recouped
from the future compensation cess
collection”.
While speaking during the press
conference after the GST Council
Meeting on Saturday, the finance
minister said, “With this release, the
Centre would clear the entire pro-
visional admissible compensational Union Finance Minister Nirmala Sitharaman chairs the 49th meeting of the Goods and Services Tax (GST) Council,
cess dues for five years as envisaged
in the GST Compensation to States at Vigyan Bhawan, in New Delhi on Saturday (ANI)
Act, 2017.”
In addition, the finance minister cial year, GST collection has crossed he added. In another development, the pe-
said the Centre would clear the ad- Rs 1.50-lakh-crore mark. The GST Johri said, “We have definitely in- troleum products can be part of GST
missible final compensation to those collection in January 2023 is the sec- creased the National Calamity Con- and what is needed is the nod from
states, which have provided the rev- ond highest next only to the collec- tingent Duty (NCCD) on cigarettes, the council members.
enue figures as certified by the audit tion reported in April 2022. there has been an increase of about Petroleum products are current-
accountant general of the states and In an interview, CBIC Chairman 16 per cent.” It has been increased ly not part of the GST framework.
that amounts to Rs 16,524 crore. Vivek Johri said, “We can assume because cigarettes are demerit “The provision is already available for
While speaking on the reduction an average monthly GST collection goods, he said, adding that its con- petroleum products to be brought
of GST rates, Sitharaman also said, of Rs 1.45 lakh crore to Rs 1.5 lakh sumption has a bad effect on health. into the GST. My predecessor had
“We are reducing the item on Raab crore.” He added, “Rs 1.5 lakh crore CBIC chairman said there was already made the window kept open.
-- the kind of liquid jaggery -- to be- has become the new normal and we no increase on tax on cigarettes for Once the states agree we will have
tween nil to 5 per cent.” She said if are confident that we will cross this the last three years. In a way, the the petroleum products also covered
it’s lost it will be nil and if it’s pre- figure in the coming year.” Board has done induction of duty, under GST. So, that’s not so much
packaged and labelled, it will be 5 Johri said that the biggest rea- he said. “From this, I believe that us not doing it, and the entire (GST)
per cent. son for increased GST collection is there will be no significant differ- council saying ‘yes’,” said Nirmala
Earlier, Vivek Johri, Chairman, that there has been a significant in- ence on smuggling because if we Sitharaman on last Wednesday.
Central Board of Indirect Taxes and crease in I-T return filing and com- take the proposal of total tax, then She made the remarks while
Customs (CBIC), has said that Rs pliance. Both the Centre and the this increase is not very much,” participating in a post-Budget inter-
1.5 lakh crore in goods and services state governments have worked to- Johri added. active session of the industry body,
tax (GST) collection has become the gether. The return filing percentage In the context of gold, Johri said PHD Chamber of Commerce and
new normal and that the Board is has increased a lot, he said, adding, it was believed that as the duty on Industry (PHDCCI), here in reply to
confident that it will cross this figure “Along with that the economy has gold increases, so does the smug- a question.
in the coming year. The gross GST also picked up.” He said the econ- gling. He added, “But this is wrong “Not just yes...what they (council
revenue collected in January 2023 omy has become robust and the ef- because we found in our analysis members) have to do is to determine
was Rs 1,55,922 crore. This was for fect of Covid is over. “There has also that smuggling happened even in the a rate and once they tell me the rate,
the third time, in the current finan- been some increase due to inflation,” years when the duty on gold was low.” we get it into the GST,” she added.

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