The centre has released over Rs. 1.65 lakh crore as GST compensation to states for fiscal 2020, including Rs 13,806 crore for March, while cess collected for GST compensation was only Rs. 95,444 crore, the minister said.

The GST Council meeting was held amid severe pressure from states that have been seeking compensation for revenue shortfall amid the coronavirus pandemic.

The centre is hard pressed on paying GST dues to states that have not earned much this year due to months of lockdown necessitated by the COVID-19 crisis. Punjab, for example, has said it may see a revenue deficit of Rs. 25,000 crore this year.

Some of the options that the GST Council considered to pay off the states include borrowing from the Reserve Bank of India (RBI).

“Two options were placed before the states. We can facilitate through RBI. States have asked to put us both the options in a detailed form today and give them seven working days, after that they will come back. It means we can have a small meeting on GST. We will take a call. Two bi-monthly payments are delayed this year. We want only for this year. The GST Council can look into the payments again in April next year,” the finance minister said.

Congress-ruled states and those run by parties other than the BJP have said the centre has a statutory obligation of paying GST dues to them. The centre has, however, claimed it has no such obligation if there is a shortfall in tax collections.

“Government of India owes us Rs. 4,400 crore for a small state like Punjab for which the total salary bill is ₹ 1,800 crore. It is getting difficult for us to run the state,” Punjab Finance Minister Manpreet Singh Badal tweeted.

Under the law that governs goods and services tax or GST, states have been guaranteed payment for loss of revenue in the first five years since the GST came into force on July 1, 2017. This means states have been promised compensation for any revenue shortfall till 2022 – if they fell below 14 per cent annual growth since July 2017.

The government’s top lawyer Attorney General KK Venugopal has also said the centre has to compensate states fully for the loss of revenue in GST during the coronavirus crisis, according to sources.

The Congress has called the centre “withholding” GST dues to states a “sovereign default” and going back on constitutional guarantees, which had been the reason the states had come on board with the GST plan in the first place.

GST collections including compensation cess to the states had been falling short of targets even before the coronavirus pandemic, making it difficult for the centre to compensate the states.

The post Rs. 2.35 lakh crore shortfall in GST collection appeared first on The Gulf Indians.

Attorney General KK Venugopal reiterated his appeal to the apex court to take a “compassionate view” and forgive Bhushan. However the court said the lawyer has not apologised yet and has even made unfavourable remarks in the affidavit filed in his defence.

Venugopal had urged the top court last week as well to spare Bhushan from any harsh punishment.
The bench then sought views of senior advocate Rajeev Dhavan, counsel for Bhushan, on punishment to be awarded in the contempt case. Dhavan said judgment convicting Bhushan should be recalled, no sentence be imposed on him.

“Please do not make Prashant Bhushan a martyr. After Babri Masjid was demolished, there were crowds to welcome Kalyan Singh. So don’t make him a martyr,” he said.

“Not only the Bhushan contempt case be closed, the controversy should be put to end. SC should give statesman like message,” he added.

To this, Justice Mishra replied, “I am not criticising Mr Bhushan…There is a difference between a court officer and a politician…if you are going to press for everything, you are identifying with the former more.”

Meanwhile, a new Supreme Court bench will hear the 2009 contempt case against Bhushan from next month as Justice Arun Mishra retires in the first week of September. The bench headed by Justice Mishra said the matter will be listed before an appropriate bench on September 10 as they are ‘short of time’.

The post Prashant Bhushan: SC reserves verdict on quantum of sentence appeared first on The Gulf Indians.