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'description' => '<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Tamil Nadu Government has reiterated its demand to Union Finance Ministry for apportionment of its share of Integrated Goods and Services Tax (IGST) from 2017-18 fiscal. 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">of the </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Rs.1,76,688.44 crore received as IGST during 2017-18 is to be apportioned to SGST component,</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> with Tamil Nadu entitled to get Rs.</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">5,453.82 crore.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Integrated Goods and Service Tax</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It is one of three categories under Goods and Service Tax (CGST, IGST and SGST) rolled out July 2017 with concept of one tax one nation. It is charged on movement of goods and services from one state to another. For example, if goods are moved from Maharashtra to Gujarat, IGST is levied on such goods. Its legal provision and statutory backing is under Integrated Goods and Service Tax (IGST) Act, 2016. The revenue collected out of IGST is shared by X central government and state government as per the rates fixed by the authorities.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Article 269A of the Constitution: </span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It says that GST on supplies in course of interstate trade will be levied and collected by Central Government and such tax will be apportioned between Centre and States according to provisions of law on recommendations of GST Council. On basis of this constitutional provision IGST Act, 2016 was enacted.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">IGST scheme for collection and devolution (As recommended by GST Council)</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of IGST collections will go to Centre (as Central Goods and Services Tax component) and remaining 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> will be allocated to States and Union Territories (as State Goods and Services Tax component). And, 42</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">%of CGST component will be devolved to States/UTs. </span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Issue of Devolution:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> Thus, States/UTs are supposed to get 71</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of IGST (including 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of SGST and 21</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">, which is 42</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of the 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> CGST). But due to wrong calculation, States received only 42</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of the IGST during 2017-18.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">CAG report</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Comptroller and Auditor General’s (CAG) report, ‘Accounts of the Union Government - Financial Audit’, released in February 2019 had pointed out that Centre had devolved </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Rs. </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">67,998 crore under IGST to States/UTs from States’ share. </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Only 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of IGST revenues are of Centre, and devolution is possible only from the Central share.</span></span> <span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Thus, the devolution, as done, is not consistent with scheme of GST/IGST. CAG has advised Centre to take into consideration needs to account for its share correctly and devolution should take place from Central share only. The remaining 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> should be apportioned to the States as per the law.</span></span></span></span></p>
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'description' => '<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Tamil Nadu Government has reiterated its demand to Union Finance Ministry for apportionment of its share of Integrated Goods and Services Tax (IGST) from 2017-18 fiscal. 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">% </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">of the </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Rs.1,76,688.44 crore received as IGST during 2017-18 is to be apportioned to SGST component,</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> with Tamil Nadu entitled to get Rs.</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">5,453.82 crore.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Integrated Goods and Service Tax</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It is one of three categories under Goods and Service Tax (CGST, IGST and SGST) rolled out July 2017 with concept of one tax one nation. It is charged on movement of goods and services from one state to another. For example, if goods are moved from Maharashtra to Gujarat, IGST is levied on such goods. Its legal provision and statutory backing is under Integrated Goods and Service Tax (IGST) Act, 2016. The revenue collected out of IGST is shared by X central government and state government as per the rates fixed by the authorities.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Article 269A of the Constitution: </span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">It says that GST on supplies in course of interstate trade will be levied and collected by Central Government and such tax will be apportioned between Centre and States according to provisions of law on recommendations of GST Council. On basis of this constitutional provision IGST Act, 2016 was enacted.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">IGST scheme for collection and devolution (As recommended by GST Council)</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of IGST collections will go to Centre (as Central Goods and Services Tax component) and remaining 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> will be allocated to States and Union Territories (as State Goods and Services Tax component). And, 42</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">%of CGST component will be devolved to States/UTs. </span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Issue of Devolution:</span></span></strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> Thus, States/UTs are supposed to get 71</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of IGST (including 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of SGST and 21</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">, which is 42</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of the 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> CGST). But due to wrong calculation, States received only 42</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of the IGST during 2017-18.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">CAG report</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in; text-align:justify"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Comptroller and Auditor General’s (CAG) report, ‘Accounts of the Union Government - Financial Audit’, released in February 2019 had pointed out that Centre had devolved </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Rs. </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">67,998 crore under IGST to States/UTs from States’ share. </span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Only 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> of IGST revenues are of Centre, and devolution is possible only from the Central share.</span></span> <span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif"">Thus, the devolution, as done, is not consistent with scheme of GST/IGST. CAG has advised Centre to take into consideration needs to account for its share correctly and devolution should take place from Central share only. The remaining 50</span></span><span style="font-size:10.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:10.0pt"><span style="font-family:"Quicksand","serif""> should be apportioned to the States as per the law.</span></span></span></span></p>
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