Page 42 - GSTL_20th August 2020_Vol 39_Part 3

J74 GST LAW TIMES [ Vol. 39
due to the States and Union Territories for the period starting from December,
2019 to February, 2020. The Government further released ` 13,806 crore for
March, 2020 on July 27, and paid all dues for FY20. The amount for April-July for
FY21 is still due. While States need the compensation, the Centre seems to lack
the resources to meet its commitment on a consistent basis.
On the revenue front, there was an unofficial target to collect ` 1 lakh
crore GST every month. The average collection was ` 89,885 crore in FY18,
` 98,114 crore in FY19, though this improved to ` 101,845 crore in FY20. The total
revenue collection was ` 7.19 lakh crore in the first eight months of FY18. The
total revenue collection was ` 11.77 lakh crore in FY19 and ` 12.22 lakh crore in
FY20.
There was no budget provision made by the Central Government for
FY18. The revised estimate was made of ` 4.44 lakh crore. But the actual realisa-
tion was ` 4.42 lakh crore. The Government had made a budget provision of
` 7.43 lakh crore for FY19. The target was revised downward to ` 6.43 lakh crore
in the midterm budget review for FY19. However, the actual realisation was
` 5.81 lakh crore. The Government has made a budgeted estimate of ` 7.61 lakh
crore for the collection of GST for FY20 in the interim budget. However, Finance
Minister Nirmala Sitharaman’s revised budget estimates to ` 6.63 lakh crores in
her maiden Budget Speech for FY20. The target was further revised to ` 6.12 lakh
crore. All these figures show a consistent overestimation of the collections.
The Government has already set a budgeted target of ` 6.90 lakh crore
for FY21. The collection for the first four months for FY21 is ` 32,172 crore, `
62,151 crore, ` 90,917 crore and ` 87,422 crore respectively. The signs are clear.
There will be a shortfall again, making the reality of GST more sobering than the
promise of GST.
[Source : The Hindustan Times, New Delhi, dated 14-8-2020]

Post-COVID fillip : State GST refunds for longer periods
Central to UP’s new industrial policy
In a bid to give a fillip to the State’s economy and provide employment
to migrant workforce that has returned in the wake of COVID-19 lockdown, the
Uttar Pradesh Cabinet has announced an accelerated investment promotion poli-
cy for the backward regions of Purvanchal (Eastern UP) Madhyanchal (Central
UP) and Bundelkhand.
The policy, which aims to accelerate the pace of industrialisation in these
regions, would provide attractive incentives to industrial units for creating
growth centres in these a reason a fast-track mode.
According to the policy, those setting up industries under this scheme in
Madhyanchal would be eligible for 70% reimbursement of net State Goods and
Services Tax (SGST) for 12 years subject to 200% of capital investment made dur-
ing the policy period. Units set up in Purvanchal and Bundelkhand would be
eligible for 70% reimbursement of net SGST for 15 years subject to 300% of capi-
tal investment made during the policy period. The current investment and em-
ployment promotion policy provides for a net SGST reimbursement of 70% to
eligible industrial units for 10 years only.
[Source : The Financial Express, New Delhi, dated 12-8-2020]
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