• Notification Date: 23-02-2022
• Notification No: N/A

Finance Minister Denies Adversarial Relationship between Centre and States on GST

Finance Minister Nirmala Sitharaman declines any kind of adversarial relationships between the Centre and the States regarding Goods and Services Tax (GST) on February 22.

At a Press Conference in Mumbai, Finance Minister has declared that GST Council has decided to continue the compensation cess till March 2026. This compensation will make up for the existing losses. The extension in GST collection as declared by the Council will be required to pay the interest on the borrowed money.

Nirmala Sitharaman had been meeting the trade and financial market stakeholders and other industries since her visit to Mumbai for the last couple of days. The recent Union Budget declaration for the financial year 2022-23 has pointed out these crucial topics.

The oil prices across the globe have increased to a great extent. The prices have raised to $99 per barrel on the last day. The press conference held by the Finance Minister took place at this juncture. In the meeting, Nirmala Sitharaman declared that the compensation period will continue until March 2026. All other important decisio0ns regarding GST were discussed in the meeting.

In the press conference, she spoke about the increment of the 50-year interest-free loan scheme by the Centre to Rs.15,000 crores for the states within 12 months. She spoke about the schemes and actions taken up by the Centre to the states related to Capex spending.

She added that this year the Centre is taking a similar initiative for the betterment of the states. The Centre has allotted Rs.1 lakh crore for the states, without any interest for a period of 50 years. Finance Minister Nirmala Sitharaman referred to the Budget speech made by her during the declaration of the Union Budget under the PM Gati Shakti Master Plan on February 2. During the Budget speech, she declared to help the states with Rs.1 lakh crore without any interest. This would attract them to make investments in the financial year 2022-23.