TODAY -

GST collection falls short
Source: The Sangai Express

Imphal, October 13 2020: On account of the COVID-19 pandemic, the Government of Manipur, like other States of the country is unable to collect Goods and Services Tax (GST) to the protected figure.

According to an instruction from the Central Government, GST collection should grow by 14 per cent every year, informed a source.

Before the outbreak of COVID-19, the State Government was able to collect GST much higher than the Central Government's instruction.

But after the COVID-19 pandemic hit the State, GST collection dropped drastically and fell below the protected figure, said the source.

It is not only Manipur, many other States are also unable to collect GST to the protected figure.

The gap or shortfall in the GST collection should be compensated by the Central Government as per the Compensation Act.

But the Centre has been asking the States to take the compensatory amounts as loan as the Central Government too is unable to collect enough from the compensatory cess.

However, many States have been contending that the Central Government should take the loan itself in order to give GST compensation to States instead of asking State Governments to take loan.

This is one key area of contention between the Centre and States, said the source.

The matter was discussed at a meeting of the State Government's GST Council held yesterday but the meeting could not arrive at any conclusion.

Meanwhile, taking serious note of the exasperating financial condition of the State, the Finance Department has been working hard to save the Government from landing in a situation of overdraft.

The department has taken up several measures to reduce expenditures of all departments and ensure timely submission of utilisation certificates for all Central sponsored schemes so that the next instalments of Central funds can be obtained without undue delay.

As of now, the State Government has been diverting and utilising funds sanctioned by the Centre for Central sponsored schemes for its day to day requirements as a temporary arrangement.

Submission of utilisation certificates would not be possible if the State Government's does not release its share for Central sponsored schemes.

Further, if the State Government cannot release its matching shares, the Central Government may hold back the next instalment of funds for several Central sponsored schemes, said the source.

The Union Finance Minister's assurance as announced yesterday that the North Eastern States would be given soft loans of Rs 200 crore each would certainly ameliorate the State's financial condition to some extent, added the source.


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