Centre-state talks soon on budget, GST

By: Admin
June 15, 2024
Categories: GST Recent News
4 Min Read

After a pause of more than two-months in policy making due to the national polls, Central and state governments are set to meet again for major policy decisions.

Federal indirect tax body the Goods and Services Tax (GST) Council is scheduled to meet on 22 June in the national capital, it announced on Thursday.

The agenda for the meeting will be finalized closer to the date but industry executives expect steps to make tax filings easier, relief for online gaming sector for their past tax dues and clarifications in the insurance sector.

The GST Council will also have to approve any legislative changes that may require the government to amend the Central GST Act through the finance bill to be presented in the forthcoming session of Parliament.

GST Council meeting

According to two people aware of discussions in the government, Union finance minister Nirmala Sitharaman, who chairs the GST Council, is also likely to hold separate discussions with state ministers, who would be in the capital, about the forthcoming union budget.

States usually raise their financing needs — including greater leeway to make borrowings, which are capped by the Centre — in pre-budget consultations. Utilization of the Centre’s long= term interest-free loan to states for building infrastructure is also expected to figure in the talks.

However, demands for special category states for Andhra Pradesh or Bihar may be a “tall order” for the government given that the status was only given to hill states along India’s borders in the past, the people cited above said.

The issue has come back in public debate after the elections given the backing that JD(U) of Bihar and TDP, which rules in Andhra Pradesh, give to the ruling Bharatiya Janata Party at the Centre.

Special category states get a higher share of Central funds and grants. Extending the same-with or without the special category state tag—could have huge fiscal implications, said one of the two persons quoted above, who spoke on condition of anonymity.

“Extensive consultations will be held for the full budget for FY25 and suggestions will be sought from states,” said the person.

The person also said that the NDA government’s 100-day agenda may see some modifications as to what would get implemented, given the changed political realities after the election.

Source from: https://www.livemint.com/economy/centrestate-talks-soon-on-budget-gst-11718279369403.html