Given the poor fiscal well being of states because of the two years of pandemic, the Centre ought to take into account extending the assured compensation for shortfall in items and repair tax (GST) revenues by 5 years, West Bengal finance minister Chandrima Bhattacharya advised FE’s Prasanta Sahu. Edited excerpts.
Where do states stand after finish of the 5-year GST compensation mechanism on June 30?
We have been asking for extension of compensation interval for fairly a while from now. No one had foreseen the Covid state of affairs in 2017 when the tax was rolled out. Despite a 23% progress in West Bengal’s revenues, there’s a shortfall from the protected income degree. There was an understanding that GST revenues will develop by 14% annually. But, resulting from Covid no state might breach that. States together with BJP-ruled ones are of the view that income safety is required to beat monetary hardship.
How lengthy the compensation must be prolonged?
We have requested for extension of compensation for an additional 5 years. The central authorities has stated not something, neither in favour nor towards the extension. Even although a bunch of ministers (GoM) was shaped, it was just for rationalisation of tax charges and slabs. Compensation challenge was not referred to it.
Will on-line gaming entice 28% GST?
We don’t wish to encourage playing. Online gaming is creating dangerous influence on youngsters additionally. So, 28% GST must be levied on on-line gaming like different playing actions. Goa minister has some considerations about Casinos. So the GoM (through which West Bengal FM is a member) has been requested to relook the problems as soon as once more and submit the report by July 15.
Source: www.financialexpress.com”