Under the GST structure, taxes are levied under 5, 12, 18 and 28 per cent slabs. Taxes levied by business houses under States are sharing their revenues as per GST
But recently In August Modi led Centre government then gave two options to the states to borrow either Rs 97,000 crore from a special window facilitated by the Reserve Bank of India or Rs 2.35 lakh crore from the market. It had also proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022 to repay the borrowing.
Following demand by some states, the amount of Rs 97,000 crore was increased to Rs 1.10 lakh crore.
As many as 21 states which are mostly BJP ruled or have supported it on various issues have opted to borrow Rs 1.10 lakh crore to meet the compensation shortfall.
The Centre has released Rs 20,000 crore to the states towards the compensation shortfall so far in the current fiscal.
In this tweet, Congress leader and MP Rahul Gandhi said,
1. Centre promises GST revenue for States.
2. Economy shattered by PM & Covid.
3. PM gives (Rs) 1.4 lakh Crs tax cuts to Corporates, buys 2 planes for himself for (Rs) 8400 Crs.
4. Centre has no money to pay States 5. FM tells States- Borrow.”
1. Centre promises GST revenue for States
2. Economy shattered by PM & Covid
3. PM gives 1.4 lakh Crs tax cuts to Corporates, buys 2 planes for himself for 8400 Crs
4. Centre has no money to pay States
5. FM tells States- Borrow
Why is your CM mortgaging your future for Modi?
— Rahul Gandhi (@RahulGandhi) October 12, 2020
Then came the sarcasm from Rahul Gandhi “Why is your CM mortgaging your future for Modi?”