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Act Of God: Nirmala Sitharaman Links GST Shortfall To Covid
The coronavirus pandemic has hurt goods and services (GST) collection and the shortfall is ₹ 2.35 lakh crore for fiscal 2021, the government said today. Finance Minister Nirmala Sitharaman, after a meeting of the decision-making body for fixing GST policies, said the coronavirus pandemic was “an act of God” and an unforeseen factor that affected GST collections. “…This year we are facing an extraordinary situation. We are facing an act of God where we may even see a contraction,” she said.
What Does Congress Party Said ?
The Congress has called the centre “withholding” GST dues to states a “sovereign default” and going back on constitutional guarantees, which had been the reason the states had come on board with the GST plan in the first place.
GST collections including compensation cess to the states had been falling short of targets even before the coronavirus pandemic, making it difficult for the centre to compensate the states.
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