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Updated on: Thursday, September 16, 2021, 11:02 AM IST

Nirmala Sitharaman to address press conference at 5 PM today

Finance minister Nirmala Sitharaman

Finance minister Nirmala Sitharaman "responded to all the representations and promised action wherever feasible and appreciated FICCI for organising the initiative," FICCI said. | File Photo

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The Finance Minister Nirmala Sitharaman is addressing a press conference at 5 PM today, a day before the GST Council meets.

The FinMin tweeted about it:

There may be announcement of much-awaited bad bank, according to a report in News18. Union Cabinet approved government’s guarantee for the National Asset Reconstruction Company Ltd (NARCL), sources told the website.

The GST Council will meet on September 17 in Lucknow which among other things may review concessional rates on COVID essentials.

The meeting on September 17 could discuss compensation to states for loss of revenue, review of rates on COVID essentials, and inverted duty on certain goods.

With GST revenue collections making a rebound post-the disruptions caused by the second wave of COVID pandemic, the Centre is likely to initiate dialogue with states for inclusion of petroleum products under the new indirect tax fold.

The meeting on September 17 could discuss compensation to states for loss of revenue, review of rates on COVID essentials, and inverted duty on certain goods.

At the upcoming GST Council meet, the Centre is expected to address various compliance issues and notify a common electronic portal -- http://gst.gov.in.

Bringing natural gas under GST

Sources privy to the development told IANS based on the Petroleum Ministry's suggestion, the Centre may take up with GST Council the issue of bringing natural gas under the Goods and Services Tax (GST) regime to begin with before the entire oil and gas sector is brought under it.

Though the Council members will discuss several pending issues such as states compensation, revision of GST rates on COVID essentials, inverted duty structure, the Centre is also likely to take up the case for early inclusion of gas into the new taxation fold.

With revenue position remaining strained due to COVID-19 outbreak, states have been reluctant to consider bringing high revenue generating petroleum products under GST fold. But with GST collections improving substantially this year remaining above the Rs 1 lakh crore psychological-mark in most months of FY22, the Centre feels it is the right time to push for tax reforms in the oil and gas sector as well with the inclusion of gas helping in plan to develop a gas-based economy in the country.

GST compensation to states

As per the written reply to a Lok Sabha question on July 19 2021, the MoS Finance had informed that GST compensation due for the period April 2020-March 2021 was 81,179 crore and Rs 55,345 crore, for the period April-May 2021. Compensation is due to all the States except Arunachal Pradesh, Manipur, Mizoram and Nagaland.

The amounts are particularly substantial for some states-Maharashtra is due Rs. 23,133 crore, Tamil Nadu Rs. 9729 crore, Karnataka Rs. 12,702 crore, Uttar Pradesh Rs.11157 crore, for the 2 years.

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Published on: Thursday, September 16, 2021, 11:03 AM IST
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