STOCK MARKET BSE NSE

Centre not paying GST share, alleges Congress

Opposition party says Union govt pushing states into debt 

Published: 26th August 2020 04:11 AM  |   Last Updated: 26th August 2020 04:11 AM   |  A+A-

Youth Congress members stage a protest against the BJP government in Bengaluru on Tuesday | vinod kumar t

By Express News Service

BENGALURU: The Congress is prepping to launch a full frontal attack against the Union government at the next GST Council meet, accusing it of violating the GST Compensation to States Act by refusing to pay compensation, and forcing them to borrow more. 

Punjab Finance Minister Manpreet Singh Badal, former GST Council member Krishna Byregowda and former Rajya Sabha MP Rajeev Gowda held a virtual press conference, saying the Modi government is pushing states – already battling a pandemic – into further debt. 

“We have a GST Compensation Act that mandates the Centre to pay compensation to States for five years at the rate of 14% growth of GST revenues. In the good years, when GST compensation revenues were higher than what was due to States, the Centre absorbed Rs 88,000 crore but now when times are tough, the Centre should compensate states,” said Prof Rajeev Gowda. 

The Congress demanded that the Centre pay GST compensation in full. Instead of increasing borrowing limit of states, the Centre should borrow from the market and use that to compensate states. It asked for GST compensation cess period to be increased to 10 years, holding the Centre responsible for the financial crisis. 

“Pendency in compensation is not just a post-Covid situation. The issue existed for a year and the Centre didn’t try to solve it. It is another sign of the Centre abdicating its constitutional responsibility and refusing to assist states,” said Byregowda. He pointed to an SBI report stating that only eight states are eligible to borrow more, which means others will be left in the lurch. “Karnataka is looking at floods and crop damage. If states don’t get their share, it will limit their ability to respond to these issues,” he added. 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp