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Friday, Dec 13, 2019

‘Embarrassment to ask again and again’: States to FM Nirmala Sitharaman on GST compensation

As per provisions of the GST Compensation Act, 2017, loss of revenue to the states after implementation of GST is payable during the transition period. The compensation is paid bi-monthy during the transition period of five years.

india Updated: Dec 04, 2019 19:23 IST
HT Correspondent
HT Correspondent
Hindustan Times, New Delhi
The finance ministers of Delhi, Punjab, Puducherry and Madhya Pradesh and representatives Kerala, Rajasthan, Chattisgarh and West Bengal attended the meeting.
The finance ministers of Delhi, Punjab, Puducherry and Madhya Pradesh and representatives Kerala, Rajasthan, Chattisgarh and West Bengal attended the meeting.(Photo: MSBADAL/ Twitter)
         

Finance ministers from opposition-ruled states met Union Finance Minister Nirmala Sitharaman on Wednesday over the delay in payment of goods and services tax (GST) compensation.

As per provisions of the GST Compensation Act, 2017, loss of revenue to the states after implementation of GST is payable during the transition period. The compensation is paid bi-monthy during the transition period of five years.

The finance ministers of Delhi, Punjab, Puducherry, Madhya Pradesh and representatives from Kerala, Rajasthan, Chhattisgarh and West Bengal attended the meeting.

Punjab finance minister Manpreet Singh Badal, who spoke to reporters after the meeting, said the compensation for August and September has not been released. “Even the compensation for next period (October-November) will be due now, so August-November,” he said.

Badal said the government is under obligation to pay. “It’s an embarrassment [for the states] to come here [to Delhi] again and again,” he added.

He said Sitharaman assured the state finance ministers that the compensation will be released as early as possible.

Delhi deputy chief minister Manish Sisodia said it is not that compensation fund does not have adequate money and around Rs 50,000 crore is there through cess collection, news agency PTI reported.

He said the state finance ministers made an appeal to Sitharaman to personally look into the matter and “not violate the constitutional provisions passed by Parliament.