Rs 4000 cr loss due to incorrect GST dispensation

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Addressing the GST Council meeting at New Delhi on Friday, Fisheries Minister D Jayakumar said that the State was suffering a net loss of estimated Rs 4,459 crore due to the incorrect dispensation adopted by the Ministry of Finance in Goods and Services Tax. Jayakumar said the Comptroller and Auditor General (CAG)  had pointed out the erroneous treatment, while urging Finance Minister Nirmala Sitharaman for early settlement of the outstanding Integrated Goods and Services tax (IGST) amount due to the State for the financial year 2017-2018. He also said that a sum of Rs 386 crore was yet to be compensated for the financial year 2017-2018 even after certification by the CAG. “I am surprised to see that even after repeated assurances of the Centre that accumulated IGST would be settled then and there, a sum of Rs 50,000 crore is taken to the Consolidated Fund of India for the year 2018-2019 in the Revised Estimates,” he said.

“This non-settlement of accumulated amount under IGST account is creating uncertainties in the minds of the State on the assurance given by the Centre for settlement of IGST.” Recalling the 33rd GST Council meeting held on March 20 and 24, 2019, he said the Revenue Secretary assured that CAG is looking into this issue and based on its recommendation, the Council would need to take a view. “If there is further delay in settlement of accumulated IGST, I am constrained to state that Tamil Nadu may have to explore the possibility of seeking adjudication on the issue as per business regulations of the GST Council,” he added. Demanding that states should collectively choose their own officials to be nominated as directors instead of being decided by the GST Council Secretariat, he said the functioning of the GSTN needs to be discussed since there are instances of delay in implementing the decision of the GST Council.

Tamil Nadu has expressed concern over the GST Implementation Committee, overruling the State’s need to bring the issue of geo-tagging of registered persons before the GST Council as it may create difficulties for small taxpayers. “I feel that in the GIC, on non-urgent matters, unanimous decisions alone may be approved and proposal with dissent by any member on the agenda may be placed before the GST Council,” he added. The minister also said the time limit for exercising option to pay composition tax by small service providers having a turnover of Rs 50 lakh, should be extended to July 31, 2019.

Read More at: http://www.newindianexpress.com/states/tamil-nadu/2019/jun/22/rs-4k-cr-loss-due-to-incorrect-gst-dispensation-1993622.html