Pending GST compensation to be cleared, assures Sitharaman

Pending GST compensation to be cleared, assures Sitharaman

Hummingbird News Desk

NEW DELHI, 18 FEB: In a major relief to the states, the Goods and Services Tax (GST) Council has decided to clear the entire due on the pending balance of the GST compensation. The decision was taken at the 49th meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman.

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Addressing the media after the meeting, Sitharaman announced that the pending balance of the GST compensation, amounting to Rs 16,982 crore for June 2022, will be cleared. She added that although this amount was not actually available in the compensation fund as of today, the Centre has decided to release this amount from its own resources and the same amount would be recouped from the future compensation cess collection.

Sitharaman also stated that with this release, the Centre would clear the entire provisionally admissible compensation cess dues for five years as envisaged in the GST (Compensation to States) Act 2017.

The Finance Minister also announced several changes in the GST rates. She said that the GST rate on Raab or liquid jaggery would be reduced from 18 per cent to nil if it was loose. If it was pre-packaged and labelled, it would attract a GST of five per cent.

Sitharaman further revealed that the GST rate on Pencil Sharpeners has been reduced to 12 per cent from the existing 18 per cent. She also announced that the GST rate on tags tracking devices or data loggers which were affixed on durable containers would be reduced from 18 per cent to nil, subject to some conditions.

The decision to clear the pending GST compensation dues and the changes in GST rates are expected to provide relief to the states and benefit several sectors. The move is likely to boost economic growth and provide a fillip to the government’s efforts to revive the economy amid the ongoing pandemic.

Tags: #GST #NirmalaSitharaman #PendingGST

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