Telangana CM KCR urges FM Sitharaman to release Rs 4,531 cr GST dues

Telangana Chief Minister K Chandrashekar Rao on Saturday wrote to Finance Minister Nirmala Sitharaman, urging her to release Rs. 4,531 crore in GST dues pending from Centre. In letter, CM explained State's financial position and tax devolution received by State so far. "Tax devolution in Telangana is Rs. 19,719 crore, 6.2% more than last year. However, this State has received only Rs. 10,304 crore till vember, which is less by Rs. 224 crore compared to last year. So, instead of receiving an enhanced amount, State has received less," Rao said.

'It is likely that re will be furr reduction in tax devolution'

"With furr slowdown of ecomy during second quarter, it is likely that re will be a furr reduction in tax devolution. Furr, because of slowdown in ecomy, re is a shortfall in GST collections compared to benchmark growth of 14%, and an amount of Rs. 1,719 cr is due as compensation as mandated under GST Act," Rao added. He outlined that State received compensation only for first four months in current financial year and balance amount is due.

'This has resulted in a shortfall of Rs. 2,812 crore'

" IGST settlement was done during 2017-18 based on tax devolution formula of Finance Commission, instead of formula adopted for IGST settlement. This has resulted in a shortfall of Rs. 2,812 crore. Due to above reasons, State is waiting for its legitimate dues of Rs. 4,531 crore of GST, while at same time it is also suffering due to a shortfall in tax devolution," CM said. "I request you to kindly look into matter and release pending dues expeditiously so that developmental programmes of Telangana do t suffer for lack of resources," he furr said.

States must question Centre on GST payout

Maharashtra may be among n-BJP-ruled States which raised alarm about delay in payment of GST compensation recently, NCP leader Dhananjay Munde claimed on Thursday and called for flagging issue at Centre's level. His comments come in run-up to meeting of Goods and Services Tax (GST) Council on December 18.

READ | GST revenue collection crossed Rs 1 lakh crore in vember

READ | FM Sitharaman invites suggestions on simplifying GST filing process

'Maharashtra is set to face such a situation tomorrow'

Last month, five n-BJP ruled states, West Bengal, Rajasthan, Punjab, Delhi and Kerala, had raised concerns over delay in payment of GST compensation by Centre since August, resulting in pressure on ir finances, as GST comprises a significant chunk of revenues for State governments. "Today, Kerala, West Bengal, Delhi, Rajasthan and Punjab are faced with this problem. Maharashtra is set to face such a situation tomorrow. "re is a need for all states to come toger to question Centre and raise issue at #GST Council," Munde, an MLA, tweeted.

READ | States must question Centre on GST payout, says NCP's Dhananjay Munde

READ | Punjab to have GST in line with Central GST; CM eyes ease of doing business

(With ncy inputs)