States Disappointed by Centre opinion by Finance Minister to compensate states GST shortage of Rs. 2.35 Lakh Crore
GST council reported that due to the Coronavirus pandemic India is facing a huge shortfall in the GST levels.
Nirmala Sitharaman speaks the "Act of God " might help to cause a contraction in the Indian Economy 2020. The concept of the act of God under article 256 of the Indian Constitution describes that under natural disaster if there is any loss caused then compensation would be granted by an Insurance policy. But in case of the economy, the term act of God generally refers as a contractual language referring force majeure refers to a clause to remove the contracts to remove all the liabilities for the natural and unavoidable catastrophe that would interior the expected course of events and obligations, in lame terms removing liability for natural and unavoidable catastrophe to encompass the armed conflict.
The two opinions proposed by the center, GST council where the states upcoming with a loss of more than Rs. 2.35 lakh crore in the current fiscal.
As per the central government calculated, the country is facing a compensation of Rs. 3 lakh crore is required which is expected through levying GST regime for about Rs. 65,000 crore.
This asks insurance policy to restrict or limit or remove the liabilities of injury, damage, and losses caused by the Act of God.