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2020 ] NEWS DESK J27
market borrowing to meet the shortfall will be among the issues that will be dis-
cussed at the meeting.
Punjab Finance Minister Manpreet Singh Badal said the Centre has
breached the Constitution by not paying the compensation, which amounts to a
sovereign default. “We are upset that India’s Finance Secretary goes to the At-
torney General and gets a view that there is no obligation on part of Government
of India to pay compensation. Compensation is a part of the Constitution and I
think this amounts to a sovereign default. India is not a banana republic,” he
said.
Badal added that in case the Centre and States are unable to reach an
agreement, there should be a dispute resolution mechanism. “This dispute reso-
lution mechanism must be activated and if there is a refusal at that level, any
State has the right to move Supreme Court and take a legal opinion. That route is
always open,” he said at a press conference on 25-8-2020.
He also pressed for election of a vice-president from among the State Fi-
nance Ministers, as mentioned in the law. “Cooperative federalism can only hap-
pen if there is a vice-chairman and dispute resolution mechanism,” said Badal,
who claims that the Centre owes Punjab ` 4,400 crore in compensation.
Attorney General K.K. Venugopal has recommended to the Centre to al-
low States to borrow to meet the shortfall on the strength of future receipts from
the compensation fund. Most States have opposed this.
The Centre released ` 1.65 trillion as compensation to States for FY20, as
against a Cess collection of ` 95,444 crore.
[Source : Business Standard, New Delhi, dated 26-8-2020]

GST registration after physical verification of business
place if Aadhaar not authenticated : CBIC

Businesses registering under GST can opt for Aadhaar authentication, in
absence of which registration would be granted only after physical verification of
the place of business. In a notification, the Central Board of Indirect Taxes and
Customs (C.B.I. & C.) said when an applicant for GST registration opts for au-
thentication of Aadhaar number, he shall, with effect from Friday (August 21),
undertake the said authentication while submitting an application. ”Where a
person... Fails to undergo authentication of Aadhaar number or does not opt for
authentication of Aadhaar number, the registration shall be granted only after
physical verification of the place of business in the presence of the said person,”
the notification added. PwC India Partner National Leader (Indirect Tax), Pratik
Jain said a taxpayer registering under GST can opt for Aadhaar authentication, in
which case registration is deemed to be granted within 3 days without physical
inspection of the premises. He added that in other cases, the time period could be
up to 21 days and authorities can undertake physical verification of place of
business or detailed review of documents as necessary. “With linkage of
Aadhaar with GST and PAN (Permanent Account Number), there would be a
centralised data base available with the Government which will facilitate data
analytics and help in checking tax evasion,” Jain said.
AMRG & Associates, Senior Partner, Rajat Mohan said authentication of
Aadhaar number would be a norm for GST registration in absence of which reg-
istration would be granted only after physical verification of the place of busi-
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