State Finance Ministers Urge Centre To Clear GST Compensation Dues
Mumbai: The Eight government of the nation had urged the center to not delay the compensation of GST today.
Demonetisation and rolling out the goods and services tax (GST) have been showcased by the BJP as two of the biggest accomplishments of the Narendra Modi government in its first term. The Opposition camp holds an exact opposite view of the two key policy decisions.
Finance ministers of Delhi, Punjab, Puducherry, and Madhya Pradesh and officials from Kerala, Rajasthan, Chhattisgarh, and West Bengal met union finance minister Nirmala Sitharaman to discuss their grievances over delay in GST compensation payment.
While talking to the reporters she said that she heard the views of state ministers and representatives and that they had given her a memorandum. The minister did not say when the GST compensation will be cleared.
The GST compensation for the months of August and September had not released to states yet, Punjab Finance Minister Manpreet Singh Badal told reporters.
“We discussed that issue with the union finance minister. Even the compensation for the next period (October-November) will be due now. The central government is under obligation to pay,” Badal said. The Sitharaman said the there is no time limit given but then to compensation will be declared soon.
Days after the second anniversary of demonetization, the government for the first time admitted that demonetization drastically affected the farmers. This gave a shot in the arm to those crying that demonetization was an ill-conceived idea that spelled doom for the economy.
The Reserve Bank of India too said almost all the money in circulation made its way back to banks signaling the tedious demonetization exercise did not have much impact on black money.
Delhi deputy chief minister Manish Sisodia said the compensation fund has around ₹50,000 crores through cess collection.
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