FM Sitharaman assures state support in GST Council meet, emphasises tax devolution

1959 Indian economist and politician Nirmala Sitharaman is born on this day. (Image: Shutterstock)

The Goods and Services Tax (GST) Council, on Saturday, June 22, convened under the leadership of Union Finance Minister Nirmala Sitharaman. The meeting, announced shortly after Sitharaman assumed office as Union Minister of Finance and Corporate Affairs, underscores the council's active role in current economic policy.

During the session, Finance Minister Sitharaman reaffirmed the Union Government's commitment to supporting states through timely tax devolution, Finance Commission grants, and settlements of GST compensation.

She highlighted the 'Scheme for Special Assistance to States for Capital Investment', emphasising that while most loans are unrestricted, a portion is contingent upon states implementing citizen-centric reforms and specific capital projects across various sectors. Sitharaman encouraged states to utilise these loans effectively by meeting the prescribed criteria.

The Finance Minister assured ministers that their inputs would be carefully considered in the upcoming formulation of the Union Budget for the next fiscal year.

The meeting saw participation from Union Minister of State for Finance Pankaj Chaudhary, along with chief ministers from Goa, Meghalaya, Mizoram, Nagaland, and Sikkim, and deputy chief ministers from Bihar, Madhya Pradesh, Odisha, Rajasthan, and Telangana.

State finance ministers, other officials from states and Union Territories with Legislature, and representatives from the central government were also in attendance.

The last GST Council meeting convened on October 7, 2023, under FM Sitharaman, during which, the council approved a 28% tax on online gaming, casinos, and horse racing. In a subsequent meeting in March, the council deferred the review of the 28% levy imposed on online gaming revenues.