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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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Blasts outside defence establishments in Punjab within 2 hours trigger security alarm

Two explosions near defence-linked locations in Punjab within two hours have triggered alarm and heightened security across the state.

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Two explosion incidents reported within a span of around two hours near key defence-linked locations in Punjab have raised serious security concerns and triggered political reactions.

The first incident took place near the Border Security Force (BSF) headquarters in Jalandhar, where a blast involving a delivery scooter was reported in a populated area. The proximity of the explosion to a sensitive security installation immediately drew the attention of authorities.

Shortly after, another blast was reported near a military-linked area in Amritsar, further heightening concerns over security preparedness in the border state. Police and security agencies responded swiftly, deploying bomb disposal squads and forensic teams at both locations.

Officials confirmed that no casualties were reported in either incident. However, the back-to-back nature of the explosions caused panic in nearby areas and prompted authorities to place the state on high alert.

Political leaders reacted strongly, questioning the handling of security and pointing to possible lapses. They urged authorities to take preventive steps to avoid such incidents in the future.

Punjab, being a strategically important border state, remains sensitive to such developments. Investigations are currently underway to determine the cause of the explosions and whether there are any links between the two incidents.

Security has been tightened around key installations, with agencies assessing whether the blasts were isolated events or part of a broader threat.

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Retired bureaucrats appointed by Mamata Banerjee barred from Bengal offices ahead of BJP government formation

Retired bureaucrats appointed under Mamata Banerjee have been barred from government offices as West Bengal prepares for a BJP-led administration.

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In a significant administrative development following the West Bengal Assembly election results, several retired bureaucrats appointed during the tenure of Mamata Banerjee have reportedly been barred from entering state government offices.

The decision comes at a time when the Bharatiya Janata Party is preparing to form its first government in the state after securing a decisive mandate. The move is seen as part of the transition process as the outgoing administration makes way for the incoming regime.

Officials indicated that the restrictions apply specifically to retired personnel who had been given contractual or advisory roles under the previous government. These individuals have now been asked not to access offices or handle official work.

The development follows a broader directive issued by the state administration to ensure that no official documents or records are removed, damaged, or tampered with during the transition period. Authorities have emphasised strict accountability, placing responsibility on departmental heads to safeguard files and maintain proper records.

The political backdrop to this move is the sweeping victory of the BJP in the 2026 West Bengal elections, marking a major shift in the state’s political landscape after years of Trinamool Congress rule.

With the new government expected to take charge soon, administrative reshuffling and tightening of access to government infrastructure are being viewed as measures to ensure a smooth and transparent handover of power.

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Vijay expresses gratitude to Modi, Rahul Gandhi for congratulatory messages after poll victory

Vijay thanked PM Modi and Rahul Gandhi after his party’s strong Tamil Nadu poll performance, promising governance focused on public welfare.

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Actor-turned-politician C. Joseph Vijay has thanked Prime Minister Narendra Modi and Congress leader Rahul Gandhi for congratulating him on his party’s strong performance in the Tamil Nadu Assembly elections 2026.

Vijay, who leads the Tamilaga Vettri Kazhagam (TVK), acknowledged the wishes shared by both leaders following the party’s impressive electoral debut, which has significantly altered the political landscape of Tamil Nadu.

Responding to the Prime Minister on social media platform X, Vijay said that his party’s focus would remain on public welfare and development. He emphasised that governance should rise above political differences and aim at improving the lives of the people.

“The well-being of our people remains our only goal… we shall focus on the state’s progress and welfare,” he said, while also expressing hope for support from the Union government in achieving these objectives.

The TVK has emerged as a major political force in the state, breaking the long-standing dominance of traditional parties and marking a major shift in Tamil Nadu’s political dynamics.

According to early developments, the party has staked claim to form the government and may seek additional support if required to prove its majority in the assembly.

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