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GST Act allows change in formula, Ajay Bhushan Pandey informs Parliamentary Standing Committee on Financing.
Financing Secretary Ajay Bhushan Pandey told the Parliamentary Standing Committee on Finance, headed by BJP MP Jayant Sinha, at a conference on Tuesday that the federal government is in no position to pay the GST share of States according to the current revenue sharing formula, sources stated.
According to at least two members who went to the meeting, Mr. Pandey’s remarks remained in response to a concern on the revenue deficiency due to the pandemic. The members then questioned him on how the government could break the dedication to the States. At this, “he [Mr. Pandey] mentioned that the GST Act has provisions to remodel the formula for paying settlement to the State governments if the revenue collection drops listed below a certain threshold,” among the members said on condition of anonymity.
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