The compensation received by the State government from the Union government did not match with its estimates. While the State government estimated that it would get ₹176 crore, the Centre gave only ₹116 crore. The Andhra Pradesh government also received ₹43 crore towards cess. The issue was brought to the notice of Centre at the GST Council meeting at New Delhi on Friday, but in vain.
“The difference in payment of compensation paid to the States was raised at the Council meeting. The Centre, however, hasn’t responded,” said Finance Minister Yanamala Ramakrishnudu. The Centre disbursed the compensation for the bi-monthly period of July and August 2017, in the last week of September to the States. There were differences in compensation released to States. The Union government was asked to rework the compensation with correct revenue figures submitted by the Andhra Pradesh government, he said.
Mr. Ramakrishnudu, at the Council meeting, raised issues faced by the traders and the consumers during the implementation of GST for the past three months. The benefit of exemptions or reductions in tax rates or Input Tax Credit (ITC) benefit on certain goods and services under the Goods and Services Tax (GST) was not being passed on to the consumers. It was, therefore, imperative that a price control mechanism be formulated urgently, he said.
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The Minister said that the taxpayers with turnover between ₹1 crore and ₹1.5 crore should be allowed to file returns once in three months.