Kerala Finance Minister Ok N Balagopal on Saturday pitched for extending the GST compensation past June subsequent 12 months as he highlighted that the state is already grappling with important income shortfall.
Addressing the media right here, the minister mentioned the state just isn’t getting its due within the wake of the fifteenth Finance Fee devolution suggestions.
Kerala can be receiving GST (Items and Companies Tax) compensation of over Rs 13,000 crore and one other one-time grant of over Rs 19,000 crore within the present fiscal ending March 2022, he famous.
In case the GST compensation ends subsequent 12 months, then the state will face additional income shortfall, he mentioned and expressed hope that the compensation regime can be prolonged.
The regime of paying compensation to states for income shortfall ensuing from subsuming their taxes equivalent to VAT within the uniform nationwide tax GST will finish in June subsequent 12 months.
Nevertheless, the cess which is presently levied on prime of the GST price on sure luxurious and sin items to fund the compensation quantity for states will proceed to be levied until March 2026. The collections can be used to repay the borrowings that needed to be completed since 2020-21 to pay for state compensation.