x

Like our Facebook Page

   
Early Times Newspaper Jammu, Leading Newspaper Jammu
 
Breaking News :   Div Com inspects protection works on Ravi River embankment at Lakhanpur | Ajaz Jan participates in Eid-Milad-un-Nabi procession at Poonch | J&K Bank holds customer meet in Delhi | Khatana hails Next-Gen GST reforms | MLA Arvind Gupta organizes free medical camp in Ward 31 | LMD imposes Rs 1.31 lakh penalty on erring traders | CM Omar Abdullah visits Kulgam | Gupta led NC delegation participated in Eid-e-Milad Procession at Dansal | JMC issues comprehensive health advisory amid post-flood challenges | Notorious bovine smuggler booked under PSA by Police | 4.26 grams heroine like substance recovered two drug peddlers arrested | Air warriors trained for Disaster Management | Two held in Delhi for duping businessman of Rs 2.15 lakh in loan scam | As waterlogging persists post-floods, fear of Dengue outbreak grips Jammu | Life-term awarded to duo for murder | Jmu–Sgr National Highway remains shut | Jhelum water level rises to 630 Cumecs in Uri | CM Omar visits flood-hit areas of Anantnag, assures relief, flood mitigation measures | IAF, Udhampur Admin airlift 2 critical patients | MeT predicts light rains, no major activity till Sept 12 | Amid stalled talks with Centre, Ladakh leaders turn to Thupstan Chhewang | PM Modi won’t address general debate at UNGA session | Searches launched in Samba | ‘Op Sindoor’ shining testament to India's unparalleled prowess: Air Chief Marshal Singh | GST overhaul people’s reform: FM Sitharaman | Punjab Flood Tragedy | “Teachers lighting the Path: The Architect of Character” | PM Modi's "Healthy India" vision gaining strength in J&K: Balbir | Youth from J&K witness passing out parade at OTA Chennai | Maa Ko Gaali Bihar Par Bari | Eid Milad-un-Nabi observed with religious fervor in Poonch | MIER College of Education organises workshop on Novel Methods of Assessment | DDC Vice-Chairperson reviews relief, Rehabilitation efforts at landslide hit Sundla village, other parts of Majalta | DC inspects pace of restoration work on Kishtwar-Thathri stretch of NH-244 | Transport Deptt to steer UP towards development: CM Yogi | Eid Milad-un-Nabi observed with religious fervor in Poonch | KVK Reasi Trains Rural Women on Agri-entrepreneurship | SDM Gool conducts on-site assessment of damages | Doda Police Prevents Suicide Attempt, Rescues Woman, Two Children | Bakshi's All-Round Brilliance helps JU XI beat Media XI by 19 Runs in a friendly Tie | Yogi Govt set to make UP global leader in agriculture by 2047 | Ganesh Visarjan celebrated with religious fervor in Poonch | Two-week Student Induction Program for new entrants begins at SMVDU | Flag-off ceremony of Ladakh Senior Girls Football Team held | Eight LPU students join 300+ international scholars at fully funded programs in Russia | DBU Enters into MoU with HNE Health Care to Promote Research and Development | Back Issues  
 
news details
Centre may prepay market loans
6/23/2024 10:11:43 PM
NEW DELHI, June 23: The Central Government may be able to repay Rs 2.69 lakh crore loans it had taken to compensate states for GST revenue loss in FY21 and FY22 by November 2025, four months ahead of its scheduled repayment, an official has said.
The full repayment of the market borrowings is expected earlier than the previously calculated timeline of March 2026.
The issue is expected to be taken up for discussion in the next meeting of the GST Council in August, the official added.
The compensation cess was initially brought in for five years to make up the revenue shortfall of states, following the implementation of the Goods and Services Tax (GST). The compensation cess expired in June 2022, but the amount collected through the levy is being used to repay the interest and principal of the Rs 2.69 lakh crore that the Centre had borrowed during COVID-19.
At the 53rd GST Council meeting on Saturday, it was learnt that Karnataka had raised the issue of continuation of compensation cess levy, repayment of the loan amount and its way forward.
“It was clarified to the states that the loan amount may be repaid early. Maybe, by November 2025 instead of March 2026. So, how the cess amount would be apportioned beyond November 2025, all this would be discussed in the next Council meeting,” the official said.
The GST Council will now have to take a call on the future of the current GST compensation cess with regard to its name and the modalities for its distribution among the states once the loans are repaid.
To meet the resource gap of the states due to the short release of compensation, the Centre borrowed and released Rs 1.1 lakh crore in 2020-21 and Rs 1.59 lakh crore in 2021-22 as back-to-back loans to meet a part of the shortfall in cess collection.
In June 2022, the Centre extended the levy of compensation cess, which is imposed on luxury, sin and demerit goods, till March 2026 to repay borrowings taken in FY21 and FY22 to compensate states for revenue loss.
GST was introduced on July 1, 2017, and states were assured of compensation for the revenue loss till June 2022, arising on account of the GST rollout.
Though states’ protected revenues were growing at 14 per cent compounded growth post-GST, the cess collection did not increase in the same proportion. COVID-19 further increased the gap between the protected revenue and the actual revenue receipt, including a reduction in cess collection.
To meet the resource gap of the states due to the short release of compensation, the Centre borrowed and released Rs 2.69 lakh crore in 2020-21 and 2021-22 as back-to-back loans to meet a part of the shortfall in cess collection. This loan was to be repaid by March 2026. (
  Share This News with Your Friends on Social Network  
  Comment on this Story  
 
 
 
Early Times Android App
STOCK UPDATE
  
BSE Sensex
NSE Nifty
 
CRICKET UPDATE
 
 
 
 
 
 
 
 
   
Home About Us Top Stories Local News National News Sports News Opinion Editorial ET Cetra Advertise with Us ET E-paper
 
 
J&K RELATED WEBSITES
J&K Govt. Official website
Jammu Kashmir Tourism
JKTDC
Mata Vaishnodevi Shrine Board
Shri Amarnath Ji Shrine Board
Shri Shiv Khori Shrine Board
UTILITY
Train Enquiry
IRCTC
Matavaishnodevi
BSNL
Jammu Kashmir Bank
State Bank of India
PUBLIC INTEREST
Passport Department
Income Tax Department
JK CAMPA
JK GAD
IT Education
Web Site Design Services
EDUCATION
Jammu University
Jammu University Results
JKBOSE
Kashmir University
IGNOU Jammu Center
SMVDU