GST funds: non-BJP-ruled States to call on Nirmala

T.M. Thomas Isaac. File photo: S. Gopakumar

T.M. Thomas Isaac. File photo: S. Gopakumar  

‘Kerala is supposed to get ₹1,600 crore in compensation’

Finance Ministers of some States that are not ruled by the BJP will call on Union Finance Minister Nirmala Sitharaman on December 3 seeking immediate release of the Goods and Services Tax compensation due from the Centre.

The decision was made during a videoconference held at the behest of Kerala Finance Minister T.M. Thomas Isaac on Saturday. Finance Ministers of Rajasthan, Chhattisgarh, Punjab and Puducherry had consultations with Mr. Isaac. Though the Finance Ministers of Delhi and West Bengal could not join the session, they have also pledged support for the move.

The decision was necessitated following the Central government’s delay in releasing GST compensation of ₹1,600 crore due to the State, Mr. Issac said. He told The Hindu that the Ministers were of the opinion that the Centre should raise the cess, if needed, to compensate the States and continue to compensate the States for the funds shortfall incurred on introducing GST.

Legal move

Earlier, Kerala had sought legal counsel for moving the Supreme Court against the delay. The Ministers who joined the conference felt that the issue should first be raised at the GST Council, which has a dispute redressal mechanism.

On failing to reach a consensus at the council, the States now have the option to move the apex court too.

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Printable version | Jun 4, 2020 5:48:52 PM |

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