There is no denying the fact that these are uncertain times and the government is feeling the heat as the national economy takes a dramatic hit. To palliate the blow faced by the economy, Nirmala Sitharaman, Union Finance Minister said on Friday that there will be a meeting held next month. The agenda of this meeting is to mainly discuss the compensation to states.
Sitharaman said that the Goods and Services Tax (GST) council will discuss borrowing to compensate states and ideally who will pay it back.
The minister said, “In July, which is on the request of all the ministers, there shall be a meeting to discuss exclusively one agenda point – compensation cess. The compensation which has to be given to the states and if at all it results in some kinds of borrowing. How and who is going to pay for it.”
This decision was taken during the 40th GST council meeting over video conferencing for the first time since the lockdown was implemented.
While adding on, the Union Finance Minister also said that registered entities with zero Goods and Services Tax (GST) return filing and who have not filed their returns between July 2017 and January 2020 will not be charged any late fees. Smaller taxpayers who have an annual turnover of up to ₹5 crores will now pay a reduced rate of interest of 9% from the usual 18% for returns filed for February-April 2020 post 6th of July 2020, if filed by September 30.