Page 37 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] NEWS DESK J89
He added that while this issue was to be raised at a separate GST Coun-
cil Meeting, it could not be done due to the lockdown.
Kerala has already said it is undergoing a financial crisis and has pitched
for additional funds from the Centre.
West Bengal asked the Centre to transfer its pending dues immediately,
stating that it had received only an inappreciable amount. It had also written to
Finance Minister Nirmala Sitharaman asking for a corporate social responsibility
tag for donations made to the Chief Minister’s relief fund.
Delhi has taken up the issue of release of funds for the national capital to
fight COVID-19.
The States will individually reach out to the Centre and will also raise
the issue of releasing GST Compensation pending since December, 2019.
The Centre recently paid ` 34,053 crore in pending GST Compensation
Cess for October and November, in two tranches, with the second tranche re-
leased earlier this month.
[Source : The Economic Times, New Delhi, dated 28-4-2020]

Nagaland puts COVID Cess on Petrol, Diesel
Nagaland has imposed a COVID-19 Cess on petrol and diesel sales, the
first State to introduce such a levy. Experts say the move could coax other sates
to impose a similar levy, which will be detrimental to the fragile economy. Naga-
land, which does not have any Novel Coronavirus case, imposed a COVID-19
Cess of ` 5 per litre on diesel and ` 6 per litre on petrol and other motor spirits
through a notification issued on April 28. States are facing revenue constraints
with all economic activity coming to a halt following the nationwide lockdown
since March 24. Petrol and diesel taxes have significant share in total revenues.
[Based on The Economic Times, New Delhi, dated 30-4-2020]

6-months GST payment freeze for worst-hit sectors, a lower
rate for realty among COVID options mulled
India is considering a Goods and Services Tax (GST) relief package to
counter the impact of COVID-19 and help prop up the economy, said people
with knowledge of the matter. The package being considered could include a six-
months suspension of GST payments for the worst-hit sectors such as restau-
rants, aviation and hospitality as well as a lower rate for the real estate sector.
Other proposals include a switch to a cash-based principle of levying tax
from the current invoice-based system and providing GST relief on sales for
which payment is not received due to the lockdown by treating those as bad
debts.
These measures are expected to ease the liquidity pressure on businesses
that are strapped for cash, said the people cited above. A final decision on the
proposals will be taken by the GST Council, which is the Apex decision-making
body for the tax.
“There is a thinking that for these service sectors, the Government
should at least spare its dues,” a Government official told ET.
GST LAW TIMES  30th April 2020  37