GST dues: Shiv Sena warns of confrontation with Centre

Centre has caused serious losses to States, yet PM has money to travel: Saamana

December 15, 2019 01:29 am | Updated 01:29 am IST - Sharad Vyas

The Shiv Sena has warned of a looming confrontation with the Centre over sharing of Goods and Services Tax (GST) compensation.

An editorial in the Sena mouthpiece Saamana on Saturday warned that the compensation for loss of revenue from implementation of the new tax regime must be shared immediately or a new ‘struggle’ could start between the Centre and the States. The failure to pay the compensation and haphazard of implementation of economic policies by New Delhi has resulted in ‘economic anarchy’, Saamana said.

“The States are suffering because of this anarchy and this could result in a new conflict between the Centre and States. The States need money for development and implementation of people centric policies. But the Centre is enjoying at the expense of the States and using this money for other things,” the editorial said.

The Shiv Sena mouthpiece said Finance Minister Nirmala Sitharaman had assured the the Centre is committed to paying GST compensation but earlier the government had promised payments of compensation would be made every two months.

“The Centre had promised to pay ₹50,000 crore to States to compensate them on account of revenue loss due to the implementation of GST. But the States have not received the GST compensation for the last four months,” the Saamana editorial said.

“The money belongs to the States and any further delay can spoil their financial situation. The States will have to raise their voice against the Centre if their rightful share in resources is not passed on to them,” it added.

“If the States concerns are suppressed and the voices stifled then we will have to stand against this ‘band of thieves’,” the editorial said.

“The Centre has caused serious losses to several States and institutions but yet the Prime Minister has the money to travel to so many countries day after day. For PM's trips the Centre has used Air India funds and refused to pay even that back. The same Prime Minister had praised GST as a revolutionary scheme for the States. But that has not happened,” the editorial said.

The Sena criticism follows a statement by Ms. Sitharaman assuring the members in the Rajya Sabha that the Centre will honour its GST commitment soon. The FM did not specify a date when the money could be allocated to the States.

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