The West Bengal administration disagreed with the claim made by Union Finance Minister Nirmala Sitharaman that the state had not submitted audited statistics, claiming that the Centre owes them Rs 2,409.96 crore in GST compensation.In response to claims that West Bengals obligations had been ignored, Finance Minister Nirmala Sitharaman had stated in Parliament on Friday that audited statistics, which West Bengal has not provided since 2017, are required for the disbursement of GST compensation to states.The Union FM reported that from 2017–18 to 2021–22, West Bengal had not submitted a GST compensation cess claim with an AG certificate. But the West Bengal Government does not agree with the statement.For West Bengal, only the two years of 2017–18 and 2018–19 have seen compensation awarded on a net basis. For the remaining periods, pay has been distributed in accordance with gross revenue. If net revenue is taken into account, the remaining amount that the Government of India owes to West Bengal is Rs 2,409.96 crore.Finance Minister had previously stated in December that the GST claims of state governments would be approved as soon as she received the necessary paperwork and a certification from each AG.End of GST to jolt a few states, says RBIIn a study on state finances, the Reserve Bank of India (RBI) claims that the suspension of the Goods and Service Tax compensation programme in June last year had the greatest impact on the economies of six states.The latest report by RBI highlights some of the major points taken by the Government on GST termination. The percentage of GST compensation, on average, exceeds 10 percent of these states tax receipts. The analysis predicts that at least 10 states, including Karnataka, Tamil Nadu, Maharashtra, Gujarat, and Uttarakhand, will not reach the 14 percent GST growth that was budgeted for.According to a report released this week, during the first five years of the transition period, the five states that received the most compensation were Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Punjab. States like Puducherry, Delhi, Punjab, Himachal Pradesh, Goa, and Uttarkhand, for which the GST compensation share in tax revenue has exceeded the average 10 percent limit, are predicted to be severely impacted by the end of the compensation regime.Where does GST cess applyThe Compensation Cess is a tax that will be levied until July 1st, 2022, on the provision of certain products, services, or both. The cess will make up for any revenue losses caused by the adoption of GST for the states. Those who choose to pay the compensation levy are exempt from paying this cess.Who obtains the GST compensation cessExcept for exporters and composition taxpayers, all taxpayers involved in the provision of certain products or services would be required to pay compensation cess. Additionally, there will be a compensatory cess applied to certain Indian-imported items. If an export compensation tax been paid, the exporter may request a refund.
