{"id":12625,"date":"2020-08-29T11:56:19","date_gmt":"2020-08-29T06:26:19","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=12625"},"modified":"2023-03-18T14:23:55","modified_gmt":"2023-03-18T08:53:55","slug":"expectations-and-outcomes-of-41st-gst-council-meeting","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/","title":{"rendered":"Expectations and Outcomes of 41st GST Council Meeting"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The <strong><em>41<sup>st<\/sup> GST Council Meeting<\/em><\/strong>\nwas held on <strong><em>27.08.2020<\/em><\/strong> in <strong><em>New Delhi<\/em><\/strong>. It was conducted through <strong><em>Video\nConferencing<\/em><\/strong> due to the <strong><em>COVID-19 pandemic<\/em><\/strong> and was chaired by\nour <strong><em>Union\nFinance Minister<\/em><\/strong>, <strong><em>Ms. Nirmala Sitharaman<\/em><\/strong>. <\/p>\n\n\n\n<p>Further, it was attended by <strong><em>Mr. Anurag Thakur<\/em><\/strong>,\nMinister of States; <strong><em>Finance Ministers<\/em><\/strong> of various States and Union Territories; and\nvarious <strong><em>senior-level officers<\/em><\/strong> from State and Central Government. The <strong><em>main\nagenda<\/em><\/strong> of this meeting is to <strong><em>overcome the revenue crisis<\/em><\/strong> faced by\nthe <strong><em>states<\/em><\/strong>.<\/p>\n\n\n\n<p>Furthermore, the last <strong><em>GST Council Meeting<\/em><\/strong> was held on <strong><em>12.06.2020<\/em><\/strong><a class=\"text-primary\" href=\"https:\/\/gstcouncil.gov.in\/gst-council-meetings\">[1]<\/a> , in which, the GST Council decided to waive off the fees for filing late returns, i.e., between July 2017 to January 2020. This was done to reduce the <strong><em>impact of the COVID-19<\/em><\/strong> crisis on <strong><em>MSMEs<\/em><\/strong> (Micro Small and Medium Enterprises).<\/p>\n\n\n\n<p>In this blog, we will talk about the <strong><em>Expectations\n<\/em><\/strong>and <strong><em>Outcomes <\/em><\/strong>of the <strong><em>41<sup>st<\/sup> GST Council Meeting<\/em><\/strong>,\ntogether with the date for the <strong><em>next GST Meeting<\/em><\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a774d711c9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a774d711c9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/#Expectations_from_41ST_GST_Council_Meeting\" title=\"Expectations from 41ST GST Council Meeting\">Expectations from 41ST GST Council Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/#Outcomes_of_41st_GST_Council_Meeting\" title=\"Outcomes of 41st GST Council Meeting\">Outcomes of 41st GST Council Meeting<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/#Two_Options_to_Overcome_Revenue_Shortfall\" title=\"Two Options to Overcome Revenue Shortfall\">Two Options to Overcome Revenue Shortfall<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/#Borrow_up_to_Rs_97000_Crores\" title=\"Borrow up to Rs\n97000 Crores\">Borrow up to Rs\n97000 Crores<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/#Borrow_the_Whole_Amount\" title=\"Borrow the Whole Amount\">Borrow the Whole Amount<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/#Relaxation_in_FBRM\" title=\"Relaxation in FBRM\">Relaxation in FBRM<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/#42nd_GST_Council_Meeting\" title=\"42nd GST Council Meeting\">42nd GST Council Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/expectations-and-outcomes-of-41st-gst-council-meeting\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expectations_from_41ST_GST_Council_Meeting\"><\/span>Expectations from 41<sup>ST<\/sup> GST Council Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong><em>issues expected from the 41<sup>st<\/sup> GST\nCouncil Meeting<\/em><\/strong> are as follows:<\/p>\n\n\n\n<ol><li>Issues Relating\nto Compensation to States to meet revenue shortfall;<\/li><li>Revision in GST\nRates;<\/li><li>GST Rate cut\nfrom the 2 wheeler industry;<\/li><li>Examine Sin Tax\napplicable to Soft Drinks;<\/li><li>&nbsp;Issues regarding the borrowing of government\nfrom markets and providing the same to the states at a lower rate to facilitate\neasier access to markets.<\/li><\/ol>\n\n\n\n<p class=\"text-left\"><b>Also, Read<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/swaritadvisors.com\/learning\/composition-scheme-under-gst-act\/\">Composition Scheme under GST Act<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Outcomes_of_41st_GST_Council_Meeting\"><\/span>Outcomes of 41<sup>st<\/sup> GST Council Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong><em>key highlights or outcomes of 41<sup>st<\/sup>\nGST Council Meeting<\/em><\/strong> are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Two_Options_to_Overcome_Revenue_Shortfall\"><\/span>Two Options to Overcome Revenue Shortfall<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Two-Options-to-Overcome.png\" alt=\"Overcome Revenue Shortfall\" class=\"wp-image-12626\" width=\"474\" height=\"346\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Two-Options-to-Overcome.png 1000w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Two-Options-to-Overcome-300x219.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/08\/Two-Options-to-Overcome-768x561.png 768w\" sizes=\"(max-width: 474px) 100vw, 474px\" \/><\/figure><\/div>\n\n\n\n<p><em>The <\/em><strong><em>two options<\/em><\/strong><em> given by the GST Council to States are as follows:<\/em><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Borrow_up_to_Rs_97000_Crores\"><\/span>Borrow up to Rs\n97000 Crores<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In the first step, the Central Government will\nprovide a \u201c<strong><em>Special Borrowing Window<\/em><\/strong>\u201d to states. Under this scheme, the\nCentral Government, together with the RBI\u2019s consultation, will grant <strong><em>Rs<\/em><\/strong>\n<strong><em>97000\ncrore<\/em><\/strong> to each state at a reasonable interest. <\/p>\n\n\n\n<p>Further, the states will return this amount to the\ngovernment <strong><em>after 5 years<\/em><\/strong>, along with the <strong><em>cess collected<\/em><\/strong>. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Borrow_the_Whole_Amount\"><\/span>Borrow the Whole Amount<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In another option, the states can borrow the <strong><em>whole\namount Rs 2.35 Lakhs<\/em><\/strong> through the special borrowing window, after the\nconsultation with the Apex Bank.<\/p>\n\n\n\n<p>Further, all the states are 7 business working days\ntime to decide on the option they want to choose. As per Ms. Nirmala\nSitharaman, if the states go for 1<sup>st<\/sup> option, then they will borrow\nless, but their compensation entitlement will be protected. However, the same\nis not possible in other case.<\/p>\n\n\n\n<p>That means every state needs to choose between less\nborrowing and acquiring cess later, or more borrowing and paying the same\nutilizing the cess collected during the transition period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relaxation_in_FBRM\"><\/span>Relaxation in FBRM<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The\ncentral Government has decided to provide <strong><em>further relaxation of 0.5%<\/em><\/strong> <strong><em>to\nthe states<\/em><\/strong> under the <strong><em>FBRM Act 2003<\/em><\/strong> (Fiscal Responsibility\nand Budget Management). Further, it is done as an extension to option 1. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"42nd_GST_Council_Meeting\"><\/span>42<sup>nd<\/sup> GST Council Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per some reports, the 42<sup>nd<\/sup> GST Council\nMeeting will take place on 19.09.2020. The key agenda of this meeting will be\nE-way Bills on Gold, together with the technical changes in GST Returns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>41<\/strong><sup><strong>st<\/strong><\/sup><strong> GST Council Meeting<\/strong> took place in the middle of the significant revenue shortfall for both Centre and States. During the meeting, the Non-BJP rules states had made shown their anger over the delay caused by the Central Government in paying GST Compensation. <\/p>\n\n\n\n<p>However, some of the states even asked for more ways\nfor raising GST collection, in case the central government fails to compensate\nthe states. <\/p>\n\n\n\n<p class=\"text-left\"><b>More on GST<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/swaritadvisors.com\/learning\/online-gst-calculator-calculate-gst-amount\/\">Online GST Calculator: Easiest Way to Calculate GST Amount<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 41st GST Council Meeting was held on 27.08.2020 in New Delhi. It was conducted through Video Conferencing due to the COVID-19 pandemic and was chaired by our Union Finance Minister, Ms. Nirmala Sitharaman. Further, it was attended by Mr. Anurag Thakur, Minister of States; Finance Ministers of various States and Union Territories; and various [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":12627,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,1],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/12625"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=12625"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/12625\/revisions"}],"predecessor-version":[{"id":19085,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/12625\/revisions\/19085"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/12627"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=12625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=12625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=12625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}