The Centre will urgently disburse nearly 20 thousand crore rupees among the states from the amount collected as compensation cess this year. Finance Minister Nirmala Sitharaman made the announcement after the 42nd GST Council meet on Monday.
Briefing the media in New Delhi, Finance Minister informed that by next week, the Centre will also disburse Rs. 25 thousand crore towards Integrated GST for 2017-18 to those states that received less amount due to the anomalies. The GST Council also recommended the extension of Levy of Compensation Cess beyond the transition period of five years which is beyond June, 2022, for such period as may be required to meet the revenue gap.
Ms. Sitharaman informed that the GST Council has deferred the decision on the mode of payment of pending GST compensation share of the states to 12th October meeting of the Council. She said that about 20 to 21 states chose the option given by the Centre which allowed the states to borrow to cover the compensation shortfall.
However, other states, she said, did not choose any option and wanted the Centre to borrow and pay the shortfall. Revenue Secretary Ajay Bhushan Pandey who was also present during the media briefing informed that starting from 1st January next year, taxpayers with less than Rs. 5 crore annual turnover will not be required to file monthly GSTR-1 and GSTR-3B returns.
He said they will now have to file it on a quarterly basis. The GST Council meeting today was attended by Finance Ministers of all States and Union Territories.