GST Council extends levy of compensation cess till March 2026


Lucknow, Sep 17 : The GST Council has agreed to levy compensation cess for an extended period upto March 2026 to enable the Centre to repay the loans, including principal and interest taken, to compensate states for GST collection shortfall. As per the GST legislation, states were to be compensated by the Centre for a period of five years till July 2022 for any shortfall in revenue due to GST implementation. But as the compensation shortfall enlarged during the pandemic, the Centre has borrowed funds to provided it to states as alternate to compensation in FY 21 and more borrowings are expected in FY22. Briefing media persons about the GST Council decisions, Finance Minister Nirmala Sitharaman said extended levy of compensation cess beyond July 2022 will only be utilised to pay on the loan amount as compensation under legislation is only required to be paid through cess collection. The Centre borrowed and provided states a sum of about Rs 1.10 lakh crore in FY21 and has provided cash compensation of Rs 75,000 crore this year. More borrowings can take place in FY22, as earlier anticipation of shortfall was about Rs 1.58 lakh crore. /IANS


Moody's revises outlook for Indian banking system to stable from negative
Mumbai, Oct 19 : Moody's has revised the outlook for the Indian banking system to stable from negative suggesting that the deterioration of asset qual

Global cues, positive macros push equities higher for 8th day in row
Mumbai, Oct 19 : Positive global cues as well as healthy Q2 results pushed equities higher on Tuesday, the eight consecutive sessions of rally.

Surcharge on power bills of 30K consumers to be waived in Gurugram
Gurugram, Oct 19 : Dakshin Haryana Bijli Vitran Nigam (DHBVN) has announced to waive surcharge on electricity bills of more than 30,000 consumers in G