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Home >Economy >GST Council meet: FM Sitharaman to chair 43rd meeting on 28 May

The Ministry of Finance on Saturday announced that the 43rd GST Council meeting will be held on 28 May in New Delhi at 11 am. The meeting will be chaired by Finance Minister Nirmala Sitharaman and will be attended by Minister of State for Finance Anurag Singh Thakur besides Finance Ministers of States & UTs and Senior officers from Union Government & States.

The meeting comes after a gap of more than six months amid the raging second wave of novel coronavirus pandemic in the country.

"Union FM Nirmala Sitharaman will chair the 43rd GST Council meeting via video conferencing at 11 AM in New Delhi on 28th May 2021...." the Finance Minister's office tweeted.

As per reports, impact of COVID-19 on economy, GST compensation shortfall, inverted duty structure, relaxation of GST on certain COVID-19 related relief may be on cards.

Earlier in March, amid outcry over high taxes on motor fuel, Sitharaman had said she would be "glad" to discuss the suggestion of bringing petrol and diesel under the ambit of the Goods and Services Tax at the next meeting of the GST Council.

Replying to the debate on Finance Bill 2021 in the Lok Sabha, Sitharaman said both the centre as well as state governments levy taxes on petrol and diesel. However, the Centre shares its collection on the fuel with states.

"I would honestly think based on today's discussion, many of the states would be watching this. In the next GST Council (meeting), if that discussion comes up, I'll be glad to have it on the agenda and discuss it. I have no issues. Let the states come and discuss it. The call has to be taken there (at the Council)," the minister said.

The GST Council met last on October 5 (extended till October 12) last year as it finalised contours of borrowing by states to meet compensation requirement for the shortfall.

On October 5, 2020, the GST Council at its 42nd meeting had decided to extend the levy of compensation cess beyond the transition period of five years for such period as may be required to meet the revenue gap.

The Centre, on the request of states, also decided to increase the shortfall amount to 1.10 lakh crores from 97,000 crore under the borrowing option.

Sitharaman said 21 states have chosen borrowing option 1 for compensation of revenue shortfall due to GST implementation.

She clarified that the Centre is not denying compensation to any state but those which have not chosen any borrowing option have to borrow from the market.

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