Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
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Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | How will the Centre ensure States&#039; finances are not hurt?    </title>
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-The Hindu

GST will subsume almost all cesses levied at the moment

One of the key sticking points thwarting consensus in the Goods and Services Council over the course of its meetings in 2016 was the compensation the Centre would have to..."/>
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GST will subsume almost all cesses levied at the moment

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                            <div align="justify">-The Hindu<br /><br /><em>GST will subsume almost all cesses levied at the moment<br /></em><br />One of the key sticking points thwarting consensus in the Goods and Services Council over the course of its meetings in 2016 was the compensation the Centre would have to pay States for any losses they might incur due to the implementation of the new indirect tax regime.<br /><br /><em>What was the issue?<br /></em><br />The GST is a destination-based tax, and as such is viewed as being to the advantage of the consuming States and to the detriment of the producing States like Maharashtra, Tamil Nadu, Gujarat, Haryana, and Karnataka.<br /><br />These States had raised objections to the implementation of GST, forcing the Centre to agree to a formula for compensating them in the event of a loss of revenue. The 14th Finance Commission advised the Centre to provide 100% compensation to States for their revenue loss after implementation of GST for the first three years. The fourth year would bring 75% compensation, and the fifth year 50% compensation.<br /><br />This, however, did not pacify the States who demanded full compensation for five years. The Centre agreed to this demand in December 2016, settling one of the most contentious issues delaying GST.<br /><br />The next question, however, was how the Centre was going to finance this compensation package, which experts estimated could be as much as Rs. 55,000 crore.<br /><br /><em>Where are the funds?<br /></em><br />The GST, once implemented, will subsume almost all the cesses levied at the moment, including Swachh Bharat Cess and Krishi Kalyan Cess. Other cesses like the education cess on imported goods and the cess on crude oil will remain under GST. However, the government needs extra revenue to compensate the States, and so the GST Council decided to impose additional cesses for five years on certain goods over and above the highest tax bracket of 28%. These goods on which cess will be levied include tobacco products, coal, motor vehicles, which include all types of cars, personal aircraft, and yachts. <br /><br />Please <a href="http://www.thehindu.com/news/national/how-will-the-centre-ensure-states-finances-are-not-hurt/article19190210.ece?homepage=true" title="http://www.thehindu.com/news/national/how-will-the-centre-ensure-states-finances-are-not-hurt/article19190210.ece?homepage=true">click here</a> to read more. <br /></div>                                                           
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                            <div align="justify">-The Hindu<br /><br /><em>GST will subsume almost all cesses levied at the moment<br /></em><br />One of the key sticking points thwarting consensus in the Goods and Services Council over the course of its meetings in 2016 was the compensation the Centre would have to pay States for any losses they might incur due to the implementation of the new indirect tax regime.<br /><br /><em>What was the issue?<br /></em><br />The GST is a destination-based tax, and as such is viewed as being to the advantage of the consuming States and to the detriment of the producing States like Maharashtra, Tamil Nadu, Gujarat, Haryana, and Karnataka.<br /><br />These States had raised objections to the implementation of GST, forcing the Centre to agree to a formula for compensating them in the event of a loss of revenue. The 14th Finance Commission advised the Centre to provide 100% compensation to States for their revenue loss after implementation of GST for the first three years. The fourth year would bring 75% compensation, and the fifth year 50% compensation.<br /><br />This, however, did not pacify the States who demanded full compensation for five years. The Centre agreed to this demand in December 2016, settling one of the most contentious issues delaying GST.<br /><br />The next question, however, was how the Centre was going to finance this compensation package, which experts estimated could be as much as Rs. 55,000 crore.<br /><br /><em>Where are the funds?<br /></em><br />The GST, once implemented, will subsume almost all the cesses levied at the moment, including Swachh Bharat Cess and Krishi Kalyan Cess. Other cesses like the education cess on imported goods and the cess on crude oil will remain under GST. However, the government needs extra revenue to compensate the States, and so the GST Council decided to impose additional cesses for five years on certain goods over and above the highest tax bracket of 28%. These goods on which cess will be levied include tobacco products, coal, motor vehicles, which include all types of cars, personal aircraft, and yachts. <br /><br />Please <a href="http://www.thehindu.com/news/national/how-will-the-centre-ensure-states-finances-are-not-hurt/article19190210.ece?homepage=true" title="http://www.thehindu.com/news/national/how-will-the-centre-ensure-states-finances-are-not-hurt/article19190210.ece?homepage=true">click here</a> to read more. <br /></div>                                                           
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                            <div align="justify">-The Hindu<br /><br /><em>GST will subsume almost all cesses levied at the moment<br /></em><br />One of the key sticking points thwarting consensus in the Goods and Services Council over the course of its meetings in 2016 was the compensation the Centre would have to pay States for any losses they might incur due to the implementation of the new indirect tax regime.<br /><br /><em>What was the issue?<br /></em><br />The GST is a destination-based tax, and as such is viewed as being to the advantage of the consuming States and to the detriment of the producing States like Maharashtra, Tamil Nadu, Gujarat, Haryana, and Karnataka.<br /><br />These States had raised objections to the implementation of GST, forcing the Centre to agree to a formula for compensating them in the event of a loss of revenue. The 14th Finance Commission advised the Centre to provide 100% compensation to States for their revenue loss after implementation of GST for the first three years. The fourth year would bring 75% compensation, and the fifth year 50% compensation.<br /><br />This, however, did not pacify the States who demanded full compensation for five years. The Centre agreed to this demand in December 2016, settling one of the most contentious issues delaying GST.<br /><br />The next question, however, was how the Centre was going to finance this compensation package, which experts estimated could be as much as Rs. 55,000 crore.<br /><br /><em>Where are the funds?<br /></em><br />The GST, once implemented, will subsume almost all the cesses levied at the moment, including Swachh Bharat Cess and Krishi Kalyan Cess. Other cesses like the education cess on imported goods and the cess on crude oil will remain under GST. However, the government needs extra revenue to compensate the States, and so the GST Council decided to impose additional cesses for five years on certain goods over and above the highest tax bracket of 28%. These goods on which cess will be levied include tobacco products, coal, motor vehicles, which include all types of cars, personal aircraft, and yachts. <br /><br />Please <a href="http://www.thehindu.com/news/national/how-will-the-centre-ensure-states-finances-are-not-hurt/article19190210.ece?homepage=true" title="http://www.thehindu.com/news/national/how-will-the-centre-ensure-states-finances-are-not-hurt/article19190210.ece?homepage=true">click here</a> to read more. <br /></div>                                                           
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How will the Centre ensure States' finances are not hurt?

Published on Jul 1, 2017   Modified on Jul 1, 2017

-The Hindu GST will subsume almost all cesses levied at the moment One of the key sticking points thwarting consensus in the Goods and Services Council over the course of its meetings in 2016 was the compensation the Centre would have to pay States for any losses they might incur due to the implementation of the new indirect tax regime. What was the issue? The GST is a destination-based tax, and as such is viewed as being to the advantage of the consuming States and to the detriment of the producing States like Maharashtra, Tamil Nadu, Gujarat, Haryana, and Karnataka. These States had raised objections to the implementation of GST, forcing the Centre to agree to a formula for compensating them in the event of a loss of revenue. The 14th Finance Commission advised the Centre to provide 100% compensation to States for their revenue loss after implementation of GST for the first three years. The fourth year would bring 75% compensation, and the fifth year 50% compensation. This, however, did not pacify the States who demanded full compensation for five years. The Centre agreed to this demand in December 2016, settling one of the most contentious issues delaying GST. The next question, however, was how the Centre was going to finance this compensation package, which experts estimated could be as much as Rs. 55,000 crore. Where are the funds? The GST, once implemented, will subsume almost all the cesses levied at the moment, including Swachh Bharat Cess and Krishi Kalyan Cess. Other cesses like the education cess on imported goods and the cess on crude oil will remain under GST. However, the government needs extra revenue to compensate the States, and so the GST Council decided to impose additional cesses for five years on certain goods over and above the highest tax bracket of 28%. These goods on which cess will be levied include tobacco products, coal, motor vehicles, which include all types of cars, personal aircraft, and yachts. Please click here to read more.

The Hindu, 1 July, 2017, http://www.thehindu.com/news/national/how-will-the-centre-ensure-states-finances-are-not-hurt/article19190210.ece?homepage=true

Tagged with: tax collection Cess Goods and Services Tax Goods and Services Tax (GST) Swachh Bharat Cess Krishi Kalyan Cess

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