The Finance Ministry has released Rs 9,871 crore as a grant to 17 states.

The Finance Ministry has released Rs 9,871 crore as a grant to 17 states.

The Finance Ministry announced on Tuesday that it had released the fifth monthly instalment of the revenue deficit assistance to 17 states, totalling Rs 9,871 crore. Article 275 of the Constitution provides the states with the Post Devolution Revenue Deficit Grant.

The grants are distributed in monthly instalments in accordance with the 15th Finance Commission’s recommendations to close the revenue gap in the governments’ accounts following devolution. The commission has recommended that the 17 states get this award in the years 2021-22.

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On August 9, 2021, the Department of Expenditure released the fifth monthly instalment of the Post Devolution Revenue Deficit (PDRD) grant to the states, totalling Rs 9,871 crore, according to a statement from the ministry.

In the current financial year, a total of Rs 49,355 crore has been distributed to eligible states.

Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand, and West Bengal are among the states nominated for the PDRD Grant by the Fifteenth Finance Commission.

E-way Bill blocking for non-payers will resume from August 15

In the financial year 2021-22, the Fifteenth Finance Commission has suggested a total PDRD Grant of Rs 1,18,452 crore for the 17 states. So far, Rs 49,355 crore (41.67 per cent) has been released from this total.

Businesses up to Rs 40 lakh Annual Turnover are now GST exempt

The Ministry of Finance tweeted that GST has lowered the rate at which citizens had to pay taxes and helped 

to increase compliance and double the tax base to 1.24 crore.

The rate at which people have to pay taxes has been reduced by GST. The revenue neutral rate of the RNR (Revenue Neutral Rate) Committee was 15.3%.Compared to this, according to RBI the weighted GST rate currently is only 11.6%.

Businesses with annual turnover of up to Rs 40 lakh are GST exempt. This limit was initially Rs 20 lakh. In addition, those with a turnover up to Rs 1.5 crore may opt for the Composition Scheme and pay only 1% tax. Once the Goods and Service Tax was implemented, the tax rate on a large number of items was lowered.

As of now, the rate of 28% is solely restricted to sin and luxury goods. Out of a total of about 230 items in the 28% slab, some 200 items have been moved to lower slabs. The housing sector was placed on a 5% slab, while the Goods and Service Tax on affordable housing was reduced to 1%.

gst exempt

All Goods and Service Tax processes have been fully automated. Till now, 50 crore returns have been filed online and 131 crore e-way bills have been generated.

The combination of value added tax ( VAT), excise, sales tax and its cascading effect resulted in a high standard tax rate of up to 31% before goods and services tax.

GST is now widely accepted as being consumer-friendly, as well as taxpayer-friendly. Although the high tax rates of the pre-GST era were a disincentive to paying tax,the lower Good and Service Tax rates helped to improve tax compliance

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