Uddhav joins chorus for GST dues

Uddhav Thackeray. File photo: PTI

Uddhav Thackeray. File photo: PTI  

Maharashtra CM asks Nirmala Sitharaman to release ₹15,558 crore

Maharahstra Chief Minister Uddhav Thackeray has written to Union Finance Minister Nirmala Sitharaman, requesting the Centre to release ₹15,558 crore in pending dues to the State, including GST compensation, citing that delayed release will impact development work in Maharashtra.

The State Cabinet, which met on Wednesday, also decided to provide additional share capital of ₹3,500 crore for the Mumbai-Nagpur Samruddhi Corridor and waive stamp duty on MoUs between agencies working on this expressway project.

In his letter to the Minister, Mr. Thackeray said the dues included ₹6,946.29 crore of tax devolution and ₹8,611.76 crore towards GST compensation.

“As per the Union Budget 2019-20, the tax devolution to Maharashtra was ₹46,630.66 crore which is 11.15% more than ₹41,952.65 crore received by the State during 2018-19. But, the State has received only ₹20,254.92 crore till October 2019 which is 25.53% less compared to the budget estimate,” the letter said.

“So instead of receiving an enhanced amount, the State has received less than the budgeted amount. With further slowdown of the economy during the second quarter, it is likely that there will be a further reduction in tax devolution,” the letter reads.

Mr. Thackeray underlined the slowdown in the State leading to a shortfall in GST collections compared to the benchmark growth of 14%.

The letter lays the blame in part on delays in settlement of large amounts under the Integrated GST resulting in a shortfall in the amount due to Maharashtra.

Mr. Thackeray’s letter comes in the wake of a recent meeting of Finance Ministers of several States.

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Printable version | Jun 2, 2020 2:52:05 PM |

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