GST Council Current Affairs

GST Council constitutes GoM to advice on Kerala’s calamity cess demand for flood rehabilitation

GST Council, the highest decision-making body of Goods and Services Tax (GST) regime has decided to set up seven-member Group of Ministers (GoM) to suggest on cess demand for Kerala flood rehabilitation. It was decided in 30th meeting of the GST Council held in New Delhi. The GoM discussed proposal from Kerala to levy Calamity Tax, a special tax or cess to raise additional resources aimed at meeting  cost of reconstruction in Kerala in the aftermath of floods.

Background

Severe flooding in month of August 2018 had severely affected Kerala due to unusual high rainfall during the monsoon season. It was the worst flooding in Kerala in nearly century after great flood of 99 that happened in 1924. It had directly affected one-sixth of total population of Kerala. All 14 districts of the state were placed on red alert. Central Government had declared it “calamity of a severe nature” or Level 3 Calamity. Due to excessive rainfall, 35 out of total 54 dams within state were opened for the first time in history. All five overflow gates of the Idukki Dam were opened at the same time, for the first time in 26 years. Heavy rains also had triggered severe landslides in Wayanad and Idukki districts and had left the hilly districts isolated. It is estimated that loss and damage due to  massive flood, , is much more than 2018-19 annual plan outlay of state which stood at Rs 37,247.99 crore.

Month: Categories: States Current Affairs - 2018

Tags:

Cabinet approves conversion of GSTN into government entity

The Union Cabinet has approved conversion of Goods and Services Tax Network (GSTN) into government-owned company. Government will now own 100% of GSTN which is IT backbone to GST regime. Majority of Goods and Services Tax (GST) processes including registration, filing of returns, payment of taxes, processing of refunds is IT driven and mainly through GSTN.

Background

Earlier in May 2018,  GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state finance ministers had agreed to make GSTN a government company with Centre owning 50% stake and states together holding the remaining 50%. Over 1.1 crore businesses are registered on GSTN portal. With enhanced role of GSTN from just collecting taxes to data analytics, Government had felt that it should now be the majority owner in the IT backbone provider.

Goods and Services Tax Network (GSTN)

GSTN was set up as not for profit, non-Government, private limited company in 2013. It was established primarily to provide IT infrastructure and services to Central and State Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST).

Currently, Centre and states together hold 49% stake (24.5% each) in GSTN. The remaining 51% is owned by five private financial institutions- ICICI Bank, NSE, HDFC Ltd, HDFC Bank and LIC Housing Finance Ltd. Its revenue model after GST was rollout out consisted of User Charge to be paid by stakeholders who will use the system and making it self-sustaining organization.

Month: Categories: India Current Affairs 2018

Tags:

Advertisement

12345...10...10