HYDERABAD: Telangana Finance Minister T Harish Rao, on Friday, urged Union Finance Minister Nirmala Sitharaman to release the pending GST dues to Telangana. Harish met Sitharaman personally during the GST Council meeting held in Lucknow, and submitted a letter to her on the matter.
“In 2018-19, an IGST amount of Rs 13,944 crore was left unapportioned and was retained in the Consolidated Fund of India. Telangana’s share in this accounts for Rs 352 crore (4.03% of 50% share, amounting to Rs 281 crore and Rs 71 crore as tax devolution). The estimated amount received by the State through tax devolution is Rs 142 crore, leaving a balance of Rs 210 crore,” Harish told Nirmala Sitharaman in the letter.
He also requested the Union Minister to release Rs 450 crore, at Rs 50 crore each for the nine erstwhile districts of the State, as backward region grant funds, under Section 94(2) of the Andhra Pradesh Reorganisation Act. “The grant for 2019-20 is yet to be released. Since the formation of the State, the number of districts has gone up from 10 to 33. And so, the number of backward districts has gone up from nine to 32. I request you to extend the period of special assistance for another five years starting from 2021-22. The grants for the year 2019-20 along with the grant for the current year may be released at the earliest,” the State Finance Minister said.
Harish wanted the Centre to release the special grant of Rs 723 crore recommended by the 15th Finance Commission for the year 2020-21. The grant was recommended on the grounds that the estimated tax devolution to the State in 2020-21 was lower than that in 2019-20, and that such a decline was not observed in any previous years so far. The grant was denied on the ground that this would set a new precedent. “In the interest of maintaining the sanctity of the FC’s recommendation, I am confident that the decision not to give the grant will be reconsidered,” Harish said.
‘Abolish RCM on cotton’
During the GST Council meeting, Harish proposed the abolition of Reverse Charge Mechanism (RCM) on cotton. He also urged the Council to discuss the subject with other cotton growing states like Maharashtra and Gujarat and address the concerns to a fitment committee for a fresh view on the subject.
Fuel price talks
In a major relief to the State, which was opposed to the inclusion of Petrol and Diesel in the GST, the Union Finance Minister clarified that the petrol and diesel subject was included in the agenda due to directions issued by the Kerala High Court. It has been decided to continue with the present status.