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GST Council decides to extend compensation cess on luxury goods, tobacco beyond June 2022: Sitharaman

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The 42nd edition of Goods and Services Tax Council meeting was held via video conferencing on October  5, 2020. The meeting concluded with the government agreeing to extend the cess on taxes on luxury goods including cars and tobacco products beyond 2022.

Levy of Compensation Cess to be extended beyond the transition period of five years beyond June, 2022, for such period as may be required to meet the revenue gap. Further details to be worked out, the ministry said in a statement.

The central government, already facing a shortfall in tax receipts, has asked the states to borrow up to 1.1 lakh crore ($15.05 billion) from the market in the current fiscal year ending in March 2021, as the surcharge collections would not be sufficient to compensate them.

The finance minister Nirmala Sithraman said compensation cess collected this year amounting to about 20,000 crore will get disbursed to all states by tonight.

The Centre in August gave two options to the states to borrow either Rs 97,000 crore from a special window facilitated by the RBI or Rs 2.35 lakh crore from the market.

While the BJP ruled states and other allies had, till mid-September opted to borrow 97,000 crore to meet the GST revenue shortfall in the current fiscal, most opposition ruled states including Kerala, Punjab, Delhi, Telangana, Chhattisgarh, and Tamil Nadu rejected the Centre’s proposal of borrowing to meet the shortfall. 

10 states demand that full compensation should be paid to the states during the current year as per clauses in the law and centre should borrow, said Thomas Issac, finance minister of Kerala, referring to the central government.

Briefing reporters after the GST meeting, Sitharaman said the GST Council has taken up the long-pending issue of Integrated Goods and Services Tax. Earlier there was no formula for devolution of Integrated Goods and Services Tax (IGST), which had resulted in several anomalies in its distribution, she said.

The panel, which decides on tax rates and structure after 17 central and state taxes such as excise duty and VAT were subsumed into Goods and Services Tax (GST), will meet again on October 12 to thrash out the state compensation issue, Union Finance Minister Nirmala Sitharaman added.

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Ram Rajya vision in focus as Delhi BJP set to present first budget in 26 years

Delhi Chief Minister Rekha Gupta expressed confidence in a progressive future under BJP leadership, promising ‘Ram Rajya’ as the party presents its first Delhi budget in over two decades.

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Delhi Chief Minister Rekha Gupta during budget day preparations

In a significant political moment for Delhi, Chief Minister Rekha Gupta is set to present the first budget of the newly formed Bharatiya Janata Party (BJP) government in the national capital, marking the party’s return to power after 27 years. The BJP-led administration is preparing to table Budget 2025-26 in the Delhi Assembly on Tuesday.

Ahead of the budget presentation, Chief Minister Gupta chaired a cabinet meeting and later offered prayers at the Hanuman Temple in Connaught Place. Expressing her spiritual confidence, she stated, “Bajrang Bali will do the best for Delhi. Delhi will progress, and Ram Rajya will be established.”

The upcoming budget is being touted by the party as a turning point for Delhi’s development. Minister Parvesh Verma described it as a “historic budget”, expressing hope that it will bring considerable benefits to residents of the capital. Echoing his view, Minister Kapil Mishra said, “This is the budget for the development of Delhi.”

The BJP’s first budget presentation in over two decades is seen as a major milestone, especially as it follows the party’s sweeping victory in the 2025 Delhi Legislative Assembly election. Rekha Gupta, who also holds the finance portfolio, will personally present the budget in the Assembly.

On the eve of the budget session, the Delhi government also tabled a Comptroller and Auditor General (CAG) report on the Delhi Transport Corporation (DTC), spotlighting issues of operational inefficiencies and financial mismanagement under the previous Aam Aadmi Party (AAP) government. The report analyzed key parameters such as fleet management, revenue generation, and public transport policy compliance, and has led to criticism of the former administration’s handling of public transport.

As anticipation builds around the 2025-26 budget, the BJP government is aiming to set a new course for governance in Delhi, aligning development with its broader vision of “Ram Rajya.”

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Police probe conspiracy angle in Kunal Kamra’s act targeting Eknath Shinde

Comedian Kunal Kamra has been summoned by Mumbai Police as they investigate if his act mocking Eknath Shinde was part of a conspiracy. Meanwhile, a comedy venue faces vandalism and demolition.

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Kunal Kamra performs stand-up comedy in Mumbai

Mumbai Police have launched an investigation into whether comedian Kunal Kamra’s recent jokes targeting Maharashtra Chief Minister Eknath Shinde were part of a larger conspiracy, raising concerns over free speech and political retaliation.

Police action and Kamra’s response

A team from Khar police station visited Kamra’s residence in Mumbai with a summons for questioning, which his parents accepted. Since the comedian is reportedly out of state, the police also sent the summons to him via WhatsApp. He faces multiple charges, including defamation and making statements conducive to public mischief.

Sources in the police department indicated they are trying to determine whether Kamra received monetary or other forms of assistance to criticise the Shiv Sena (Shinde faction) chief. Investigators are also probing if anyone helped him write the controversial material. Authorities may examine Kamra’s phone and electronic devices as part of the ongoing inquiry.

The controversial act and aftermath

The uproar stems from a parody segment Kamra performed during a comedy show at Mumbai’s Habitat studio. He reworked the lyrics of the iconic 1997 Bollywood song Bholi Si Surat to mock Eknath Shinde, using terms like gaddar (traitor), a reference to Shinde’s 2022 rebellion that toppled the Uddhav Thackeray-led government.

The act triggered a backlash, leading to the vandalism of Habitat studio by alleged Shiv Sena supporters. While Shinde distanced himself from the violence, he said emotions of party workers were valid and questioned who had given Kamra “supari” (a term often linked to contract killings) to target him.

Habitat studio shuts operations

Following the incident, civic officials conducted a demolition drive at the studio, citing alleged building code violations. The venue, popular for stand-up comedy, has now shut its doors temporarily. In a statement, the studio clarified it has no involvement in the content performed on its stage.

“We have never been involved in the content performed by any artist, but the recent events have made us rethink about how we get blamed and targeted,” the studio said.

Kamra stands firm

Kunal Kamra addressed the controversy on social media platform X, stating that neither the venue nor any political party was responsible for his performance. Drawing an analogy, he wrote, “Attacking a venue for a comedian’s words is as senseless as overturning a lorry carrying tomatoes because you didn’t like the butter chicken you were served.”

He further stated he is not afraid and is open to cooperating with authorities. However, he raised questions about whether equal legal action would be taken against those who vandalised the studio or against the civic officials who conducted the demolition without prior notice.

Opposition support

Opposition leaders have come out in support of the comic, condemning the government’s action. Uddhav Thackeray, chief of the Shiv Sena (UBT), defended Kamra, saying his remarks reflected truth and were not just satire. “Those who steal are gaddar. There is no freedom of expression when it comes to traitors,” he said.

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Fire breaks out after gas cylinder blasts in truck at Dharavi, four vehicles damaged, no casualties

Panic gripped Mumbai’s Dharavi area after a truck carrying LPG cylinders caught fire following multiple explosions. No injuries were reported, and the fire was brought under control.

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A fire broke out in Mumbai’s Dharavi on Monday night after multiple gas cylinders exploded in a parked truck, triggering panic and traffic chaos. Fortunately, no injuries were reported in the incident, which took place near Maharashtra Nature Park on the Sion Dharavi Link Road.

According to officials, the fire erupted around 9.50 pm after a series of blasts from a truck loaded with LPG cylinders near PNGP Colony. The blaze was categorized as a level II (medium emergency) and brought under control by 19 fire tenders deployed to the site.

Deputy chief fire officer Santosh Sawant stated that an LPG cylinder used for home delivery services was the first to explode, which escalated the fire. The situation led to damage to at least four nearby vehicles, but swift evacuation and emergency response ensured no injuries occurred.

“The explosion led to the fire’s escalation. We dispatched five fire engines following level II protocol. No reports of injuries have been received so far,” Sawant said.

Residents of nearby buildings, including Raju Darshan A1 and B2, rushed out in panic after hearing the loud explosions. Ansarul Shaikh, a local resident, claimed that around 20 cylinders exploded, although officials have not confirmed this figure.

“The blasts caused panic, and many ran for cover. Fortunately, pedestrians were on the other side of the road. The police managed crowd control, and the fire brigade acted promptly,” Shaikh added.

The incident also caused a traffic jam along the busy Sion Dharavi Link Road. Crowds gathered at the site, many capturing videos of the blaze, which quickly circulated on social media.

Probe underway

Authorities have identified the truck driver and are in the process of apprehending him. Investigations are ongoing to determine the exact cause of the cylinder explosions.

Officials assured that the situation is now under control and urged the public not to panic. Further updates are expected once forensic analysis and the fire department’s full report are available.

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