The Indian economy is expected to decline by 8 percent in the last financial year 2020-21. RBI last month retained the GDP growth forecast of 10.5 per cent for the current financial year.
Revenue Secretary Tarun Bajaj said this year amid the second wave of Coronavirus, the economy did not suffer much as compared to last year. Last year a complete lockdown was imposed in the country. He further said that if the GST revenue of Rs 1.10 lakh crore is received on an average every month, then in such a situation the GST revenue deficit of the states will be around Rs 1.50 lakh crore.
After the 43rd meeting of the GST Council, Bajaj said, if we follow the same formula as last year, then the difference in GST becomes Rs 1.58 lakh crore. But last year when the complete lockdown was imposed and the economy had to suffer a lot, this is not the case this year.
Economy expected to decline by 8 percent
The Indian economy is expected to decline by 8 percent in the last financial year 2020-21. The Reserve Bank of India (RBI) last month retained the GDP growth forecast of 10.5 per cent for the current financial year. At the same time, ADB has forecast a growth of 11 percent during the year.
However, the Central Government has estimated the compensation to be given to the states at Rs 2.69 lakh crore during the current financial year. Out of this, Rs 1.58 lakh crore will be raised by borrowing this year.
Big relief to small taxpayers too
In view of the interests of small businessmen and taxpayers, the government has reduced the late fee while giving relief under the amnity scheme. Annual return filing will be kept optional. Reconciliation statement for the financial year 2020-21 will have to be submitted only by those taxpayers whose annual turnover is more than 5 crores.
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