GST compensation cess period already extended till March 2026: FM Nirmala Sitharaman
Bengaluru, Mar 9: Union Finance Minister Nirmala Sitharaman on Wednesday said the GST compensation cess period has already been extended till March 2026 to enable the Centre to repay loans taken to compensate all states for the year 2020.
During an interaction with reporters here, she said, "It's not just for me to take a call. It's for the GST council to decide and we have discussed it." The Union Minister was responding to a query on Karnataka Chief Minister Basavaraj Bommai's statement requesting the Centre to extend the GST compensation period, which ends in June. Elaborating further, Sitharaman said the GST council has already decided to extend the compensation cess period till March 2026. "It is already extended for paying off the loan, which was taken for all the states, for the compensation that could not be paid in 2020. And again, which could not be somewhat, not fully, paid in 2021," the Finance Minister said.
As for the GST amount between 2020 and 2021, which was due to the states, with compounded interest at 14 per cent each year, she said in view of it, the central government took a conscious decision at the GST council meeting that it will borrow back-to-back and give it to the states.
"Both the loan and the repayment, together with the interest itself, will require compensation cess to be extended till March 2026 and that's what we have done. So the amount collected from the extended cess collection will go towards payment of the compensation amount borrowed and the interest on it," the FM explained.
On the impact on import of edible oil into the country due to the Ukraine crisis, Sitharaman said India is looking for alternatives.
"Edible oil is also an area where we have challenges, where we have to see how we can address it," she said.
India is encouraging farmers in the north east region to grow palm, since the climatic condition there is similar to Malaysia and Indonesia.
We have taken up palm mission and are helping farmers get into production of palm oil in those areas, where palm can be cultivated, because we import huge quantities of palm oil, both the crude and refined, she added.
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CM Siddaramaiah criticises Central Government's drought relief allocation; Challenges Modi's claims
Kalaburagi: In a press conference held in Kalaburagi, Chief Minister Siddaramaiah voiced strong dissatisfaction with the central government's allocation of drought relief funds. Expressing dismay, he stated that the compensation provided by the central government falls drastically short of the requested amount.
Siddaramaiah revealed that despite a request for 18,174 crores from the state, the actual compensation received amounted to a mere 3,454 crores. He spoke about the urgency of addressing this issue and announced plans to discuss the matter further with relevant officials to convey the state's stance.
Highlighting the gravity of the situation, Siddaramaiah mentioned that Karnataka had taken the unprecedented step of approaching the Supreme Court regarding the matter of drought relief.
Moreover, Siddaramaiah criticised Prime Minister Modi's recent statements, accusing him of making false claims out of political desperation. He condemned Modi's alleged attempts to polarise by misrepresenting the government's efforts, particularly regarding support for backward classes and minorities.
Kalaburagi In-charge Minister Priyank Kharge, along with other prominent political figures including Sharanprakash Patil, BR Patil, MLA Dr. Ajay Singh, and Congress District President Jagdev Guttedar were present.
