MUMBAI: Maharashtra Chief Minister Uddhav Thackeray has written to union finance minister requesting an immediate release of its “legitimate dues” of Rs 15,558 crore comprising GST compensation up to November 2019 from the Centre.
“The pending dues include Rs 6946.29 core of tax devolution and Rs 8611.76 crore towards GST compensation,” the letter written by Thackeray has stated.
“As per the Union budget 2019-20, the tax devolution to Maharashtra was Rs 46,630.66 crore which is 11.15 per cent more than Rs 41,952.65 crore received by the state during 2018-19. But, the state has received only Rs 20,254.92 crore till October 2019 which is 25.53 per cent less compared to the budget estimate of 2019-20. Instead of receiving the enhanced amount, the state has received less than the budgeted amount. With the further slowdown of the economy during the second quarter, it’s likely that there will be a further reduction in tax devolution,” the letter said.
“Instead of receiving the enhanced amount, the state has received less than the budgeted amount. With further slowdown of the economy during the second quarter, it's likely that there will be further reduction in tax devolution,” the letter said.
It also expressed fear of a shortfall in GST collections compared to the benchmark growth of 14 per cent due to the slowdown in the economy.
“During the current financial year, we have received Rs 5635 crore as GST compensation for the first four months only. However, an amount of Rs 8611.76 crore is due towards the GST compensation up to November 2019,” Thackeray said in the letter.
The letter further stated that Integrated GST (IGST) settlement was done during 2017-18 based on tax devolution formula of the Finance Commission, instead of the formula adopted for such settlement.
“As per the latest CAG report, for the year ended March 2018, the IGST settlement for many transactions is not happening,” it stated.
“The state is awaiting legitimate dues of Rs 15,558.05 crore from the Centre. The state is also suffering due to the shortfall in tax devolution. Timely release of GST compensation and tax devolution amount will help my state to manage finances efficiently,” the letter said.