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Opposition MPs hold protests over GST compensation to States

States have been raising the issue of GST compensation with Finance Minister Nirmala Sitharaman.

States have been raising the issue of GST compensation with Finance Minister Nirmala Sitharaman.   | Photo Credit: PTI

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Dues amounting to ₹50,000 crore have not been paid since August

Opposition MPs — especially those from the States where their parties head governments — on Wednesday protested and raised the issue of the inability of the Centre to pay compensation to States under the Goods and Services Tax (GST) Compensation Act. The Shiv Sena had also sent an adjournment motion for the same to the Lok Sabha but it was rejected by Speaker Om Birla.

As soon as the Question Hour commenced in the Lok Sabha, Telangana Rashtra Samithi members stood up with posters demanding the release of dues related to the GST. They also raised slogans. They were joined by the members of the TMC and the Shiv Sena. DMK leader T.R. Baalu raised the issue during the Zero Hour as well.

Some State governments had raised concerns on compensation on the GST. They had pegged the pending dues at ₹50,000 crore. In this regard, representatives of various States held a meeting with Finance Minister Nirmala Sitharaman earlier this month.

When the GST was introduced from July 1, 2017, the Centre had assured the States through a legislation that the revenue shortfall arising from their taxes being subsumed in the new indirect tax will be compensated fully for the first five years. However, the compensation has not been paid since August.

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Printable version | Jan 24, 2020 5:44:23 PM | https://www.thehindu.com/news/national/trs-shiv-sena-tmc-members-protest-in-parliament-over-gst-dues/article30275650.ece

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