Raipur. A Group of Ministers has been formed to restructure the compensation cess under GST. Chhattisgarh Finance Minister OP Chaudhary has been named a member of this group formed under the chairmanship of Union Minister of State for Finance Pankaj Chaudhary.
It is noteworthy that in the 54th meeting of the GST Council, emphasis was laid on creating a new tax structure by abolishing the compensation cess. In this context, a Group of Ministers has been formed. In this committee formed under the leadership of Union Minister of State for Finance Pankaj Choudhary, apart from OP Choudhary, Assam Finance Minister Smita Neg, Gujarat Finance Minister Kanubhai Desai, Karnataka Revenue Minister Krishna Byre Gowda, Madhya Pradesh Deputy Chief Minister and Finance Minister Jagdish Deora, Punjab Finance Minister Harpal Singh Cheema and Tamil Nadu Finance Minister Thangam Thinnarasu have been made members.
This group will consider various tax proposals to develop an effective and holistic tax system after the abolition of compensation cess. The Council had emphasized that the new tax structure will not only ensure financial stability of the states, but will also promote economic growth. The importance of financial resources provided to the states through Compensation Cess can be understood from the fact that it helps many development projects.