PANJIM: In a surprise move, the Centre on Monday released GST compensation of Rs 35,298 crore to States and Union Territories, two days ahead of GST Council meeting, which was expected to be stormy in the wake of States demanding compensation due to them for the past two months and the Centre expressing its inability to do so due to lack of resources.
The State government, which is reeling under debt of more than Rs 15,000 cr, heaved a sigh of relief after Rs 250 cr was credited in its account.
Speaking to Herald, Finance Secretary Daulat Hawaldar confirmed the development. “I have been told by Commercial Taxes Commissioner that the amount of Rs 250 cr has been credited in the account,” the Finance Secretary said.
Goa has till date taken a loan of Rs 1700 cr this year as the GST shortfall has reached nearly 26 per cent, as admitted by Chief Minister Pramod Sawant recently.
“The Central government has released GST compensation of Rs 35,298 crore to States and Union Territories today,” the Central Board of Indirect Taxes and Customs (CBIC) said in a tweet.
The move comes after seven opposition-governed States threatened to approach the Supreme Court for non-payment of their dues, which they said was their constitutional right.
The GST Council meeting on Wednesday is expected to discuss measures to raise revenue, increase tax base and tax compliance as the GST collections have been falling of late.
GST collections fell short of the budgeted estimates by about 40 per cent in the April-November period. That will translate into an estimated Rs 80,000 crore of total revenue loss to the Centre. The overall tax revenue shortfall could go upto Rs 2.03 lakh crore.
